bank payday

Banks bid farewell to payday loans (Daytona Times)

More good news keeps coming for consumers in early 2014. On the heels of new mortgage rules that took effect January 10, the following week four banks making payday loans pulled their products from the market. Announcing a halt to their triple-digit interest rates were Wells Fargo, Regions, Fifth Third and US Bank.

Together, these lenders have combined assets of $2.1 trillion, serving customers through 30,000 branches and more than 21,500 ATMs across the country.

Banks Bid Farewell to Payday Loans (The Times Weekly)

More good news keeps coming for consumers in early 2014. On the heels of new mortgage rules that took effect January 10, the following week four banks making payday loans pulled their products from the market. Announcing a halt to their triple-digit interest rates were Wells Fargo, Regions, Fifth Third and US Bank. Together, these lenders have combined assets of $2.1 trillion, serving customers through 30,000 branches and more than 21,500 ATMs across the country.

From the President: Payday Regulators Must Avoid Creating Loopholes

Written by Dory Rand on June 27, 2013 - 8:00am

As we outlined in our recent joint report, we’ve seen these games before in Illinois. Payday regulators must avoid creating such loopholes.

In 2001, the Illinois Department of Financial and Professional Regulations issued consumer protections on payday loans with terms of less than 30 days. Payday lenders simply evaded the rules by offering payday loan products with 31-day terms.

Comment letter to the FDIC and OCC regarding guidance on deposit advance products

This comment letter supports proposed guidance from the OCC and FDIC regarding bank deposit advance products, which are functionally equivalent to payday loans. The letter also recommends that the OCC and FDIC institute an annual percentage rate cap, require APR disclosure, prevent mandatory automatic repayment, and strongly enforce the guidance. Eighteen organizations signed on to the letter.

Sign on to support proposed rules on bank payday loans

As we mentioned earlier this week, two federal regulators have released proposed rules that would put an end to the worst practices of payday lending by banks. We need to let regulators know that we support their changes! Comments are due next week Thursday, May 30. There are two ways you can make your voice heard on this issue.

Regulators bring necessary reform to bank payday lending—now it’s time to reform all high-cost credit

Bank regulators released proposed rules on April 30 that, at long last, would enact strong consumer protections for “deposit advance products”—essentially, payday loans offered by a mainstream bank. To hear it from the banks, making sure that borrowers can pay back loans and preventing an endless cycle of debt would somehow make consumers worse off (“Banking group says new regs could push consumers into risky payday loans,” April 28). 

Regulators curb worst bank payday lending practices

The proposed standards require an assessment of the borrower’s eligibility for the product and financial capacity  to repay the loan and meet other financial obligations, limit the number of such loans borrowers can receive in one year, and mandate adequate management and monitoring of the significant safety and soundness risks posed by offering these high-cost, short-term loans.  The public has an opportunity to comment on the proposed guidance. 

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