AG Raoul led a coalition of 20 state AGs in sending a letter to federal banking regulators raising concerns about granting national banking charters to financial technology companies, often referred to as fintechs, without necessary safeguards to protect consumers, investors and the financial system. The attorneys general call on regulators to deny charters to fintechs that have a history of predatory lending or risky practices.

“As state enforcers, attorneys general are often the first line of defense and have historically detected the early warning signs of dangers to consumers and the financial system. Some fintech lenders use predatory tactics that target the financially vulnerable and further trap them in cycles of debt. Loans are often extended without checking a consumer’s ability to repay, and as a result, borrowers frequently default. Granting these companies banking charters would allow bad actors to dodge state consumer protections and could be a threat to our nation’s financial system.” -AG Raoul