Payday Lending Vilified Again
A new report from the Center for Responsible Lending has documented that payday lending at six large banks is continuing, and the reported alleged it is damaging consumers financially.
The center, which released the report on March 21, said the six banks are Wells Fargo, U.S. Bank, Regions Bank, Fifth Third Bank, Bank of Oklahoma and Guaranty Bank. None of the banks named responded to requests for comment on the report. But Wells Fargo has a frequently asked questions document on its website about its Direct Deposit Advance program.
The report calls on federal financial regulators to shut down the loan programs as they are currently structured and only allow them to restart under terms that are much more favorable to borrowers, including allowing affordable installments and capping interest at 36%.
Meanwhile, pressure against banks’ payday lending has been growing.