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Forum Post: Big Banks Offer Payday Loans At 300 Percent Interest:

Posted 7 years ago on March 22, 2013, 12:04 a.m. EST by BradB (2693) from Washington, DC
This content is user submitted and not an official statement

Big banks will now lend money at 300 percent interest without threatening to break a leg.

Then again, the payday loans some big banks are offering can have other ill effects, such as financial ruin, according to a new study by the Center for Responsible Lending. Even as public anxiety grows about the dangers of payday lending, with 15 states recently banning the practice, many big banks are offering the service to their customers.

"Despite federal banking regulators’ recognition of the abuses of payday lending and aggressive action blocking previous bank partnerships with payday lenders, a few large banks have begun offering payday loans directly through checking accounts," the study says. Large banks offering the service include Wells Fargo, U.S. Bank, Regions Bank and Fifth Third Bank.

The average annual percentage rate on a bank payday loan is 225 to 300 percent, the study says. Banks that offer payday loans extract payments automatically from the borrowers' checking accounts on the next pay cycle.


from: http://www.huffingtonpost.com/2013/03/21/big-bank-payday-loan_n_2924657.html?



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[-] 4 points by jrhirsch (4714) from Sun City, CA 7 years ago

I already knew Wells Fargo was a sleazy bank, but they keep sinking deeper and deeper. Thanks for the update.

Always remember, the better dressed the businessman, the better the chance you will get royally screwed.

[-] 2 points by gsw (3324) from Woodbridge Township, NJ 7 years ago

People need living wage, not 300 percent loans.

Banks don't need our 85 billion a month QE3 ... It's time people got that directly ... To the 99 percent

[-] 2 points by jrhirsch (4714) from Sun City, CA 7 years ago

Yeah, the need for loans is a symptom of low wages.

It would make a lot more sense for the money supply increase be given directly to the people, instead of being stolen from them to give to others.

[-] 1 points by gsw (3324) from Woodbridge Township, NJ 7 years ago

stealing is what it is and the others are the 1 percent and those with stocks and who were not hurt in the financial melt down of wall street banks, but profited from it at our expense, and that of future generations


preaching to the choir

[-] 3 points by GirlFriday (17435) 7 years ago

Those lenders are in turn scrambling offshore and online as they come under increasing scrutiny in the U.S.

Like cockroaches.

Poverty pimps.