| OCC Deleted
Nubank Application for Bank
Charter So FOIA Now Challenge
Filed
by
Matthew Russell Lee, Patreon Book
Substack
SOUTH BRONX/SDNY,
Oct 11 – With the US Congress
passing the cryptocurrency
GENIUS Act, Ripple Labs as
well as Circle and others,
have applied for banking
charters to the Office of the
Comptroller of the
Currency. Now
Brazil's Nubank has applied.
Inner City Press has FOIAed.
On October
11 Fair Finance Watch filed a
timely comment with the OCC,
including:
On behalf
of Fair Finance Watch, this is
a timely comment in opposition
to the application to charter
the proposed Nubank
N.A. FFW is
troubled that Nubank with its
record wants a US national
bank. Consider: "The
MP’s investigation uncovered
several violations, including
offering loans without the
customer’s request, collecting
on already paid debts, and
imposing unauthorised
instalment plans, as well as
charging disputed purchases
and failing to offer
alternatives for early
repayment or debt
amortisation, as required by
law. Additionally, according
to the lawsuit, complaints
were also filed about the
application of excessive
interest rates, which were be
considered abusive.
Prosecutors alleged that some
customers were required to pay
debt without having requested
or authorised the funds, nor
having access to the money
allegedly made available by
the bank. The MP-BA asked the
court to require Nubank to
offer clear information about
its products and credit,
assess the consumers’ real
financial condition before
granting loans, and ensure the
preservation of an existential
minimum to prevent
over-indebtedness."
Also, "late
payments for 90 days or more
are now substantially higher
than the 5.5% average for the
banking sector calculated by
Brazil’s central bank.
While Nubank doesn’t break
down non-performing loan or
credit data by country — it
does business in Brazil,
Mexico and Colombia —
90% of its customers are in
Brazil."
How would
Nubank (and
the OCC)
assure this
would not
happen in the
US? This
is a request
for public
hearings.
FFW
will have more to say when it
receives responses to its and
Inner City Press' FOIA
requests. On the current
record, the application(s)
could not legitimately be
approved.
***
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