The National Association of Industrial Bankers (NAIB) appreciates the opportunity to submit comments on proposed amendments to § 1026.52(b) and its accompanying commentary as they relate to credit card late fees.

We appreciate the Committee’s desire to protect consumers from risks in the financial sector. However, the legislation introduced in the Close the Shadow Banking Loophole Act unfairly targets Industrial Loan Companies (ILCs), which are among the safest and soundest banks in the U.S. financial system. The proposed legislation is anti-innovation, anti-competition, and runs counter to its stated objectives.

The undersigned also work with a variety of depository institutions in their CRA obligations. This includes a strong working relationship with the National Association of Industrial Bankers, which represents industrial banks chartered in Utah and Nevada. Industrial banks have been an enthusiastic and helpful partner in many of our CRA projects and endeavors.

The National Association of Industrial Bankers (NAIB) appreciates the opportunity to submit comments on the Notice of Proposed Rulemaking promulgated by the Board of Governors of the Federal Reserve System the Federal Deposit Insurance Corporation, and the Office of the Comptroller of the Currency (“Agencies”) relating to amendments to the regulations implementing the Community Reinvestment Act (CRA), issued May 5, 2022.

The undersigned organizations, trade associations and companies that represent a significant portion of the American vehicle industry, write today to urge the House Committee on Financial Services to oppose H.R. 5912 – the Close the ILC Loophole Act. This bill as drafted will adversely impact the vehicle industry by eliminating decades-long Industrial Loan Company (ILCs) charters and unnecessarily creating a prohibition on future auto-related businesses seeking an ILC charter.

The National Association of Industrial Bankers hereby responds to a recent joint trade association letter (“Joint Letter”) sent by the Bank Policy Institute (BPI), the Center for Responsible Lending (CRL), the Independent Community Bankers of America (ICBA) and other organizations. This Joint Letter calls on Congress to pass H.R. 5912, The Close the ILC Loophole Act. This letter will correct the misrepresentations made in the Joint Letter and provide you with an accurate story about Industrial Loan Corporations (ILCs).

Congress is considering eliminating the exemption for industrial loan companies (“ILCs”) from the definition of a bank under the Bank Holding Company Act (“BHCA”). State regulators believe there are several misconceptions regarding ILCs and the permissible activities of ILCs and their commercial parents.

NAIB member banks understand the importance of managing third party relationships in a safe and sound manner. We hope the comments provided will be helpful in developing well balanced and effective guidelines without regulatory burdens that may be overkill and without adequately considering the impact on the banks.

The National Association of Industrial Bankers appreciates the opportunity to submit this statement for the record to the Subcommittee on Consumer Protection and Financial Institutions hearing on: The Future of Banking: How Consolidation, Nonbank Competition, and Technology are Reshaping the Banking System.

We, the undersigned companies, are writing to ask you to oppose any action that would eliminate or unduly weaken a historically strong, safe avenue for innovation and growth in the financial services industry: industrial loan corporations (ILC), also described as industrial banks.

One of the most difficult challenges industrial banks face in Washington is correcting the misinformation spread by critics, much of which is deliberately misleading. A good example is a recent article on industrial banks written by Arthur E. Wilmarth, Jr., of the George Washington University Law School.

The National Association of Industrial Bankers, the Utah Bankers Association and the Nevada Bankers Association appreciate the opportunity to submit this statement for the record of the Subcommittee on Consumer Protection and Financial Institutions hearing on “Banking Innovation or Regulatory Evasion? Exploring Trends in Financial Institution Charters.”