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Bank Payday Lending

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Bank Payday Lending

We, the community that is undersigned civil liberties, faith, and customer teams, urge you never to start the floodgates to predatory tiny dollar loan techniques by banking institutions and payday lenders. Current protections—including state usury guidelines and current FDIC help with tiny buck loan items—are critical tools to make certain safe, accountable financing techniques aren’t pressed out from the market by high-cost, unaffordable financial obligation trap services and products. Particularly, we urge one to (1) retain the FDIC’s critical guidance handling pay day loans (“deposit advances”) created by banking institutions; (2) make certain that small dollar installment loans will set you back 36per cent APR or less and on the basis of the consumer’s ability to settle considering both earnings and costs; and (3) avoid bank partnerships that evade state rate of interest limitations.

Retain deposit advance guidance handling high-cost pay day loans.

In 2013, a few banking institutions had been making high-cost payday “deposit advance” loans, structured exactly like loans produced by non-bank payday lenders. Continue reading