Bank Payday Lending

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"CBS This Morning" interviews CRL's Rebecca Borne on predatory payday lending by banks.

Good News: Reforms are in the Works

The Federal Deposit Insurance Corporation (FDIC) and the Office of the Comptroller of the Currency (OCC) have issued proposed guidance aimed at reining in payday lending by banks. In addition, the Consumer Financial Protection Bureau released a study with a number of damning findings, showing overall that payday loans are structured to trap low-income borrowers in a cycle of high-interest debt.

Read the joint press statement from CRL and a number of allies.

A Bad Deal, not a Solution

Banks defend their payday lending by saying these loans are for one-time emergency use, but CRL’s report, Triple-Digit Danger: Bank Payday Lending Persists, shows that these loans trap borrowers:

In 2011, the average bank payday borrower took out 19 loans.
Repeat borrowing occurs because the loans weren’t affordable in the first place, so borrowers take out a new loan to repay the previous one.
More than a quarter of bank payday borrowers are Social Security recipients.

“Triple Digit Danger” press release

Is/Was Your Bank a Payday Lender?

Have you had a Direct Deposit Advance from Wells Fargo, a Checking Account Advance from US Bank, an Early Access Now advance from Fifth Third Bank, or a Regions Bank Ready Advance? Find out which banks have been pushing payday loans and where.

We'd like to hear about your experience. Read stories from other borrowers and tell us your story.