A predatory model that can’t be fixed: Why banking institutions should always be held from reentering the pay day loan company

A predatory model that can’t be fixed: Why banking institutions should always be held from reentering the pay day loan company

Editor’s note: into the Washington that is new, of Donald Trump, many when settled policies into the world of customer security are actually “back in the dining dining table” as predatory organizations push to make use of the president’s pro corporate/anti regulatory stances. a brand new report from the guts for Responsible Lending (“Been there; done that: Banks should remain away from payday lending explains why one of the more unpleasant of the efforts a proposition to permit banking institutions to re go into the inherently destructive company of creating high interest “payday” loans must certanly be battled and refused no matter what.

Banking institutions once drained $500 million from clients yearly by trapping them in harmful pay day loans. In 2013, six banking institutions had been making triple digit interest payday loans, organized exactly like loans produced by storefront payday lenders.

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