Consumer Federation of America. Financial Solutions and Membership Outreach Manager

Subject Material Professionals

Rachel Gittleman

Many Recent Press Releases

Advocates Applaud Senate Repeal of nationwide Banking Regulator’s Predatory Lending Rule; Urge the homely house to do something quickly

Brand New Bank Regulator Leadership Welcome

Bipartisan selection of 25 State Attorneys General Urge Congress to Repeal OCC Lender” that is“True Rule

Most Recent Testimony and Responses

CFA Urges Massachusetts Finance Board to guard Consumers by bringing down the Interest Rate Cap

CFA and Other Groups Oppose OCC’s Proposed Rule to stress Banking institutions to aid Predatory Lending

CFA as well as other Groups Express Concerns to OCC About Oportun’s Application for a nationwide Bank Charter

Senators Inform FDIC to prevent Payday Lenders Rent Bank that is letting Charters

Washington, D.C. – Consumer Federation of America (CFA) applauded Senator Charles Schumer and five other Senators for contacting Donald Powell, Chairman for the Federal Deposit Insurance Corporation, to get rid of the abuse of federally insured state banking institutions to greatly help payday loan providers evade state usury and tiny loan guidelines.

Pay day loans are quick money loans at triple-digit rates of interest predicated on individual checks or electronic usage of borrowers’ bank accounts due in complete regarding the borrowers’ next payday. Customers pay $6 billion a 12 months to borrow $40 billion in payday advances. Customers targeted by payday loan providers are low to income that is middle armed forces, and minorities.

“Federal bank regulators place an end with their banking institutions partnering with payday loan providers because of unsafe and unsound methods,” Jean Ann Fox, CFA manager of customer security, stated. “Only the FDIC allows ten FDIC-insured state banking institutions to take part in the cash advance company.”

Payday loan providers, including eleven associated with the thirteen biggest organizations in the market, “rent” bank charters to have around state usury and tiny loan legislation meant to protect cash-strapped customers from predatory loans. Payday financing is unlawful in more than a dozen states and limited by state law in other people. States, such as for instance ny, nj-new jersey, new york, Texas, Pennsylvania, Georgia and Maryland make an effort to protect cash-strapped borrowers but have already been invaded by payday loan providers and their partner banks happy to lease their charters.

“The FDIC directions on payday financing try not to substitute for state consumer defenses,” stated Ms. Fox. “States cannot protect their customers if store front loan providers can evade state laws that are usury partnering with banks in Southern Dakota and Delaware which have no limitations on interest levels.”

Other people signing the page to FDIC Chairman Powell consist of Senators Sarbanes, Levin, Durbin, Corzine, and Clinton.

The customer Federation of America is a nonprofit relationship of 300 customer teams, created in 1968 to advance the customer interest through research, education, and advocacy.

FDIC State Banks That Partner with Payday Lenders

County Bank of Rehoboth Beach, DE,

Very Very First Bank of Delaware

BankWestern, Inc., Pierre, SD

First Fidelity Bank in Burke, Southern

Community State Bank, Southern Dakota

United States Bank & Trust, Wessington Springs, SD

Bryant State Bank, Bryant, SD

Reliabank Dakota, Estelline, SD

Republic Bank & Trust, Kentucky

Venture Bank, Washington

Payday Lenders that Partner with FDIC Banks

Eleven of this thirteen biggest loan that is payday make loans with bank lovers in certain states.

Advance America

ACE Cash Express

Check n’ get

Look into money

Dollar Financial Group

Money America Overseas

Very Very First American Holding

QC Financial Solutions, Inc., d/b/a Quik Money

EZCORP, Inc., d/b/a EZPawn

First Money Financial

FlexCheck Holdings

Supply: “Unsafe and Unsound: Payday Lenders Hide Behind FDIC Bank Charters to Peddle Usury – A Report on Devices Used by Payday Lenders to Evade State Usury and Small Loan Laws,” issued by customer Federation of America, March 30, 2004.