‘Rent-a-banks’ involving Utah high-interest lending falling under scrutiny of Congress

by Mobili |22 de agosto de 2021 |0 Comments | line of credit payday loans

‘Rent-a-banks’ involving Utah high-interest lending falling under scrutiny of Congress

Customer teams state that high-interest loan providers — who issue such things as payday or vehicle title loans — are using a unique solution to evade state interest caps nationally: They partner with banking institutions in Utah, which sets no limitation on prices.

In just what the groups call a “rent-a-bank scheme,” such lenders solicit, structure and collect on loans that charge as much as 222per cent annual interest — however their partner banking institutions in Utah theoretically problem or contain the loans to evade caps somewhere else.

Groups attacked the partnerships in congressional testimony along with three Utah banks they say are involved: FinWise, Capital Community Bank and TAB Bank wednesday. read more