Minneapolis-based U.S. Bank last week began offering a small-dollar loan product called Simple Loan that charges interest rates ranging from more than 70 percent to almost 88 percent.
"This type of product isn't a safe alternative to a payday loan," Rebecca Borne, senior policy counsel at the center, said in a statement. "And we reject the notion that bank loans as high as 70 [percent] to 88 percent [annual percentage rate] will drive out higher-priced credit by nonbanks."