FDIC Must Not Enable Banking Institutions to Make loans that are payday says Coalition Letter

FDIC Must Not Enable Banking Institutions to Make loans that are payday says Coalition Letter

As seat of FDIC considers policy, broad coalition urges regulators and banking institutions to prevent toxic loans that trap customers with debt

WASHINGTON, D.C. – The mind associated with the Federal Deposit Insurance Corporation (FDIC), Jelena McWilliams, is “reviewing whether or not to rescind recommendations for ‘deposit advance’ loans,” according to a job interview she had because of the Wall Street Journal. “Deposit advance” is a euphemism for bank pay day loans, which – ahead of the FDIC’s 2013 guidance – had interest that is triple-digit, lacked an ability-to-repay standard, and trapped consumers with debt. Read more