Letter to Bank Regulators: Stop Bank Payday Lending
Some 250 advocates urged four federal regulators to get rid of the predatory training of bank lending that is payday February 22, 2012. The CFPB, OCC, FDIC and Federal Reserve Board can and really should stop Wells Fargo, United States Bank, Fifth Third Bank and areas Bank from trapping their clients in long-lasting financial obligation at 400per cent yearly interest.
|The Honorable Ben S. Bernanke Chairman Board of Governors, Federal Reserve System twentieth Street and Constitution Avenue, NW Washington, DC 20551
The Honorable Richard Cordray Director Customer Financial Protection Bureau 1500 Pennsylvania Ave. NW Washington, DC 20220
|Mr. Martin Gruenberg Acting Director Federal Deposit Insurance Corporation 1776 F Street, NW Washington, DC 20006
||Mr. John Walsh Acting Comptroller workplace associated with Comptroller associated with the Currency 250 E Street, SW Washington, DC 20219
cc: The Honorable Sarah Bloom Raskin, The Honorable Elizabeth A. Duke, The Honorable Daniel K. Tarullo
Dear Chairman Bernanke, Director Cordray, Acting Chairman Gruenberg, and Acting Comptroller Walsh:
We compose to urge the federal regulators of payday loans AZ our nationвЂ™s banking institutions to simply simply take action that is immediate stop banking institutions from making unaffordable, high-cost payday advances.
Wells Fargo, United States Bank, Fifth Third, areas, and Guaranty BankвЂ™s deposit вЂњadvanceвЂќ loans are organized the same as loans from pay day loan stores вЂ“ carrying a high-cost along with a short-term balloon payment. Studies have long shown why these loans trap borrowers in a period of costly debt that is long-term causing severe monetary problems for borrowers, including increased probability of bankruptcy, having to pay bank card debts as well as other bills belated, delayed health care bills, and loss in fundamental banking privileges as a result of duplicated overdrafts.
Further, payday financing by banking institutions undermines state legislation in the usa which have forbidden or imposed significant limitations on pay day loans in the past few years, or which have never permitted payday advances to engage in their market. […]