Groups Call on Bank to Stop Offering ‘Predatory’ Payday Loans

August 12, 2013
Legal Newsline  
payday lending news

A coalition of community groups that include the National People’s Action, GRO-Missouri, Illinois People’s Action, and Iowa CCI have demanded that Regions Bank stop offering its Ready Advance loan. The groups representing the tri-state area contend that the product is a form of "predatory" payday lending. Interest on a Ready Advance loan can exceed 300 percent on an annual basis; and its business model relies on “debt traps” and “non-existent underwriting,” the organizations complain. In a letter to Regions Financial Corp. Chairman, President, and CEO Grayson Hall, they requested a meeting within 30 days and a “direct response” from the executive by Aug. 30. The letter argued that Ready Advance loans are used by “vulnerable” borrowers, including the elderly, the poor, and people with disabilities.
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