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Big banking institutions play key part in financing payday loan providers

Big banking institutions play key part in financing payday loan providers

Individuals who spend high charges to borrow from alleged payday loan providers generally don’t have bank records, but that doesn’t suggest banks aren’t earning profits from their website.

WHEN IT COMES TO RECORD: pay day loans: a write-up into the Sept. 15 company section about the funding that payday lenders receive from major banking institutions stated that individuals who remove payday advances generally don’t have bank accounts. In fact, payday loan providers need borrowers to own a bank or credit union bank account. —

Major banking institutions led by Wells Fargo & Co., United States Bancorp and JPMorgan Chase & Co. offer significantly more than $2.5 billion in credit to large lenders that are payday scientists in the Public Accountability Initiative estimate in a study released Tuesday.

The funding provides vital help for an industry criticized for charging you effective yearly interest levels that may top 400%, the scientists stated. Continue reading “Big banking institutions play key part in financing payday loan providers”

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