Committee set to vote on ILC bill after pulling overdraft measure

The House Financial Services Committee today is set to vote on ICBA-advocated legislation to close the industrial loan company loophole after pulling an ICBA-opposed bill to implement overdraft restrictions.

ILC Legislation: The Close the ILC Loophole Act (H.R. 5912) would amend the Bank Holding Company Act to permanently close the loophole, which allows ILCs and their parent companies to skirt regulatory oversight.

Overdraft Update: Following strong ICBA and community bank opposition, the committee dropped from consideration the Overdraft Protection Act (H.R. 4277), which includes restrictions that would force many community banks to stop offering overdraft services.

Small-Biz Bill: A separate ICBA-opposed bill on small-business debt collection remains up for a vote. The Small Business Fair Debt Collection Protection Act (H.R. 6814) would make it harder for community banks to communicate with struggling small-business debtors to provide relief.

Votes Scheduled: After starting its markup yesterday, the committee is scheduled to reconvene at 1 p.m. (Eastern time) today to start voting this afternoon.

Grassroots Campaign: ICBA continues urging community bankers with representatives on the committee to speak out on the bills via a customizable action alert to their lawmakers.