author thomas ramseyer
Major banks have quickly become behind-the-scenes allies of
Internet-based payday lenders that offer short-term loans with interest
rates sometimes exceeding 500 percent
by Jessica Silver-Greenberg
With 15 states banning payday loans, a growing number of the lenders have set up online operations in more hospitable states or far-flung locales like Belize, Malta and the West Indies to more easily evade statewide caps on interest rates.
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While the banks, which include giants like JPMorgan Chase, Bank of
America and Wells Fargo, do not make the loans, they are a critical link
for the lenders, enabling the lenders to withdraw payments
automatically from borrowers’ bank accounts, even in states where the
loans are banned entirely. In some cases, the banks allow lenders to tap
checking accounts even after the customers have begged them to stop the
withdrawals...... read the full article
Unquote
Opinion
Such activities perfectly fit the destructive power banks and other financial instiutions have. They virtually are dancing on top of the noses of the helpless lawmakers.
thomas ramseyer
