Maria Vullo, superintendent of New York's Department of Financial Services, sued the federal government to void its decision to award national bank charters to online lenders and payment companies.
Vullo believes that allowing financial technology companies, or fintech firms, to obtain charters is "lawless, ill-conceived, and destabilizing of financial markets." Additionally, Vullo believes that awarding national bank charters to fintech companies is unconstitutional and puts vulnerable consumers at risk to predatory lending. The U.S. Department of Treasury plans to defend its authority to grant national charters to qualified companies engaged in the business of banking. The case is proceeding as Vullo v. Office of the Comptroller of the Currency et al, U.S. District Court, Southern District of New York, No. 18-08377.
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This article was written with contributions from Tim Piscatelli.