September 18, 2018

Statement by Financial Services Superintendent Maria T. Vullo Regarding the OCC’s Decision to Accept Fintech Charter Applications

“Unlike the federal government, New Yorkers do not suffer from amnesia and we have not forgotten the lessons of the financial crisis.  The OCC’s decision to begin accepting applications for special purpose charters is not about consumer choice but is instead a lawless, ill-conceived scheme to destabilize financial markets that are properly and most effectively regulated by the states. New York strictly enforces robust anti-usury law protections and rightly bans payday lending that the special purpose charter will only serve to facilitate. Rather than bring about consumer choice, the OCC’s attempted action to preempt existing state regulation creates serious threats to the well-being of consumers, especially the most vulnerable ones, who will be at great risk of exploitation by federally-chartered "too big to fail" entities improperly insulated from New York law.”