Trillium Asks Regulators to Stop Banks from Making Payday Loans
Trillium Asset Management, along with 250 national, state and local organizations and individuals, has recently sent a letter to the Consumer Financial Protection Bureau, The Federal Reserve Board, the FDIC and the Office of the Comptroller of the Currency asking the regulators to stop banks from making predatory payday loans, which can carry annual interest rates of nearly 400%.
The letter focuses on deposit “advance” loans which banks structure like loans from payday lenders. These loans are high-cost and have a short-term balloon repayment, trapping low-wealth and low-income borrowers in a cycle of expensive and increasing debt, causing serious financial harm.
The letter can be viewed here.
A press release from the Center for Responsible Lending can be viewed here.