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.
These products are similar to payday loans because of their triple-digit interest rates, short terms with balloon payments, and lack of underwriting requirements before approval.
The Bureau’s Office of Consumer Response is adding payday loans to its list of previously accepted complaints on bank accounts, mortgages, debt collection, credit cards, credit reports, money transfers, student loans, and other consumer loans. Now consumers will also be able to submit complaints about payday loan issues, including:
The CFPB hosted a hearing in Chicago on the impact of the Credit Card Accountability Responsibility and Disclosure (CARD) Act on the credit card market, the same day it released a report on the CARD Act.