A predatory model that can’t be fixed: Why banking institutions must be held from reentering the loan business that is payday
Editor’s note: when you look at the brand new Washington, D.C. Of Donald Trump, numerous once-settled policies into the world of customer security are now actually “back regarding the dining table” as predatory organizations push to make use of the president’s pro-corporate/anti-regulatory stances. A brand new report from the middle for accountable Lending (“Been there; done that: Banks should remain away from payday lending”) describes why probably one of the most unpleasant among these efforts – a proposition to permit banking institutions to re-enter the inherently destructive company of making high-interest “payday” loans ought to be battled and refused no matter what.
Banking institutions once drained $500 million from clients yearly by trapping them in harmful loans that are payday. In 2013, six banking institutions had been making triple-digit interest payday loans, organized similar to loans made by storefront payday lenders. Continue reading “A predatory model that can’t be fixed: Why banking institutions must be held from reentering the loan business that is payday” »