The U.S. House of Representatives on Thursday voted to repeal a rule which allowed nonbank lenders, including fintech startups, to partner with banks in states without interest-rate caps to offer higher-interest loans than would otherwise be permitted.
The House voted 218-210 to pass a Congressional Review Act resolution which revoked the so-called "true lender" rule issued by the Office of the Comptroller of the Currency, according to the Hill.
The Senate passed a similar resolution in May. President Biden is expected to sign the bill. The use of the Congressional Review Act also bans the OCC from issuing another similar rule.
Fintech startups and other supporters of the rule argued that it made it easier for them to offer credit and would force them to navigate a confusing quilt of state regulations. Opponents of the rule said it enabled predatory lending and overruled state regulations.