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Sunday, February 24, 2013

Major Banks Aid in Payday Loans Banned by States

Major Banks Aid in Payday Loans Banned by States $JPM $C $BAC $GS $BCS

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.

Michelle V. Agins/The New York Times
Subrina Baptiste of Brooklyn says JPMorgan Chase allowed payday lenders to seize child-support funds in her account.
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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