⭐🔥 Click here to check Latest Celeb News & Celebrity Gossip in 2022! 🔥⭐
The Washington Independent
The Washington Independent

Big Banks and Payday Lenders

National People’s Action and the Public Accountability Initiative are up with a report on financial links between payday lenders, Main Street banks and Wall

Paula M. Graham
News
Last updated: Jul 31, 2020 | Sep 15, 2010

National People’s Action and the Public Accountability Initiative are up with a report on financial links between payday lenders, Main Street banks and Wall Street banks. “While small businesses and individuals have struggled to get affordable loans in the wake of the taxpayer bailouts, payday lenders have received new and amended credit agreements from Wall Street,” it says. “Instead of wading further into the business of predatory payday lending, big banks need to stop financing these lenders and instead lend to businesses and individuals that create wealth, rather than destroy it.”

The report shows that big banks are providing billions of dollars in loans to fringe financial outfits; in turn, those fringe financial outfits are offering billions of dollars in loans to customers, often at usurious rates. Some payday lenders, for instance, offer short-term, roll-over cash advances with APRs of over 480 percent. The report argues the voluminous Wall Street financing means the payday business will keep expanding through the recession, as cash-strapped customers seek unconventional and sometimes dangerous banking products.

But, of course, we’ve known for decades that payday lending and other fringe financial services are big, big business, and the ties between that storefront cash checker and Wall Street are closer than you might think. (For the most in-depth examination of this phenomenon, see Gary Rivlin’s great Broke USA.) Many Main Street banks are actually competing with payday lenders now, offering their own versions of the same products.

What this really militates for is strong regulations set for the benefit of consumers, not created under the influence of lobbyists. To that end, the new Consumer Financial Protection Bureau — which maybe, just maybe, will get its leader in soon — should do a lot to constrain the industry’s worst practices.

Paula M. Graham | Paula is a writer and editor who works as a freelancer. She covers subjects such as banking, insurance, and digital marketing in his writing. Paula is a bookworm who also enjoys podcasts and freshly made coffee.

Related

$1.3 trillion in federal spending unaccounted for, report finds

Despite calls for independent bodies to keep government accountable, the Sunlight Foundation’s most recent Clearspending report has found the federal

$1.89 billion given to states to fight HIV

The federal government Monday announced more than $1.89 billion in funding to states to fight the HIV epidemic with access to care and with more cash for the failing AIDS Drug Assistance Program. According to an HHS press release , $813 million of that money will go directly to the ADAP programming. An additional $8,386,340 will be issued as a supplement to 36 states and territories currently facing a litany of unmet needs and access issues.

1 Brigade and 1 Battalion

ISTANBUL – It’s 10 p.m. in the lowest level of the Istanbul airport. In 20 minutes I’ll be allowed to board my plane to Kabul, bringing me to the

1. Brian Schweitzer

As governor of Montana, Schweitzer doesn’t represent one of the most highly populated, high-profile electoral states in the country. But this

#1 in Conspiracy Theories

Andrew Young’s tell-all biography of John Edwards, hitting shelves next week, is surging in one Amazon.com category in particular. #1 in Conspiracy

$1 Million for Toomey

Pat Toomey, the former Club for Growth president and leading Republican candidate in Pennsylvania’s 2010 Senate race, has announced a $1 million haul in the

$1 Trillion for Fannie and Freddie?

That is the worst-case scenario, according to Egan-Jones Ratings Co., quoted in a Bloomberg article making the rounds. The agency says that if home prices

$1.3 Million for Brown

The GOP’s candidate in the Massachusetts special election raised more than one million dollars -- double the goal -- in a 24-hour moneybomb on the Ron Paul

Ten Loopholes That Can’t Make It Into FinReg

Dan Pfeiffer, the White House communications director, wrote a blog post that lists the loopholes lobbyists most want inserted into Sen. Chris Dodd’s (D-Conn.)

Bachmann uncomfortable over earmarks ban

Republicans appear to have boxed themselves into a corner with their portrayal of earmarks as wasteful spending, as many of them have backed a moratorium on

Troubled mine holds hope for U.S. rare earth industry

China currently controls 97 percent of the world’s rare earth production. The Mountain Pass Mine could change that -- if it can overcome serious environmental concerns.

© Copyright 2022 The Washington Independent All Rights Reserved

Terms & Privacy | twi.news@washingtonindependent.com

⭐🔥 Click here to check Latest Celeb News & Celebrity Gossip in 2022! 🔥⭐