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Broad Coalition Urges Regulators and Banks to Avoid a Return to Toxic Loans that Trap Consumers in Debt

August 21, 2018
Payday and Other Small Dollar Loans
Payday Loans
Letters to Congress

Consumer, civil rights, faith, and community groups are urging the FDIC Chair in this letter to keep in place the agency’s guidance urging banks to not sell these toxic loan products, which are harmful to consumers, banks’ reputation, and its safety and soundness. The coalition’s letter also calls for the FDIC to ensure small dollar installment loans are capped at 36% or less and to prevent bank partnerships that evade state interest rate limits.