Wells Fargo and US Bank End Bank Payday Lending

by Sabrina I. Pacifici on January 17, 2014

CFA Calls on Fifth Third Bank to Discontinue Deposit Advance Product: “In a positive step forward for consumers, three of the largest providers of bank payday loans announced that they would no longer offer high-cost loans to their checking account customers. Recent findings from a report issued by the Consumer Financial Protection Bureau found that bank payday loans, commonly referred to as deposit advance products, had many of the same terms and conditions as payday loans offered through storefronts or online.  A CFA analysis of one deposit advance program found consumers were charged the equivalent of 391 percent APR for a deposit advance loan and that the bank did not consider the borrowers income and expenses when extending credit.”

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