FDIC Must Not Enable Banking Institutions to Make Pay Day Loans, says Coalition Letter

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

WASHINGTON, D.C. ??“ the relative mind associated with Federal Deposit Insurance Corporation (FDIC), Jelena McWilliams, is ???reviewing whether or not to rescind instructions for ???deposit advance??™ loans,??? according to a job interview she had aided by the Wall Street Journal. ???Deposit advance??? is really a euphemism for bank pay day loans, which ??“ ahead of the FDIC??™s 2013 guidance ??“ had triple-digit interest levels, lacked an ability-to-repay standard, and trapped consumers with debt. The agency??™s guidance advising ability-to-repay determinations on such loans for this reason, consumer, civil rights, faith, and community groups are urging the FDIC Chair to keep in place. Read More Here…