Big banks complicit with online payday lenders.

February 25, 2013 | By | Reply More

Big banks are complicit with online payday lenders. This story from the NYT is not the least bit surprising, not that it makes this article any less disturbing.

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.

The article indicates that without the backing of the big banks, many of these payday lenders would cease to exist.

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Category: Corporatocracy, Economy, Social justice

About the Author ()

Erich Vieth is an attorney focusing on consumer law litigation and appellate practice. He is also a working musician and a writer, having founded Dangerous Intersection in 2006. Erich lives in the Shaw Neighborhood of St. Louis, Missouri, where he lives half-time with his two extraordinary daughters.

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