The following brief outlines the history of predatory lending and its effects on the most vulnerable groups of society as well as on the issue of banking deserts that create an opportunity to provide more people with high-interest credit. Three policy options are analyzed, namely: a 36% interest-rate cap at the federal level, addressing the "rent-a-bank" loophole via adopting a true lender standard, and increased investments in CDFIs. The conclusion reached states that adoption of a true lender standard at the federal level is the most feasible policy option as it will help to close the rent-a-bank loophole.

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October 30, 2026