Bank Payday Lending
"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.
Learn More about Bank Payday
Want to understand how bank payday lending works and why it's harmful?
- Bank Payday Lending Basics (February 2012 slideshare)
- Watch our “Bank Payday Lending Basics” (February 2012 webinar)
News and Views on Bank Payday Lending
- Comment letter: CRL and allies urge the FDIC and OCC to proceed with their crackdown
- Read the letters from numerous community groups and lawmakers who oppose bank payday lending
- Bank payday lending in the news (Storify)
- Overview of Media and public concerns (March 7, 2013)
- Dr. Frederick Haynes calls on banks to stop playing predatory payday lenders.
- Consumer groups call for regulators to end the abuse before it becomes business as usual.
- CRL’s payday lending research and our July 2011 report on bank payday loans
- In response to the sign-on letter, the FDIC promises to investigate banks making payday loans.
- CRL and NCLC: Stop all federal credit unions from making payday loans