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Major Banks Profit From Payday Advances; African-Americans Very Likely To Borrow

Major Banks Profit From Payday Advances; African-Americans Very Likely To Borrow

A new report reveals that major banks like JP Morgan Chase, Bank of America and Wells Fargo are behind-the-scenes partners in the practice of giving short-term loans to consumers with interest rates as high as 500 percent as many states crack down on so-called “payday” loans.

Lenders whom issue the loans that are payday attempting to steer clear of the bans presently in place in 15 states by establishing store much more hospitable states or beyond the U.S. borders, in nations like Belize and Malta, as well as in the West Indies, according to a tale into the nyc circumstances.

“While the banks, such as leaders like JPMorgan Chase, Bank of America and Wells Fargo, usually do not result in the loans, these are typically a critical website link for lenders, enabling lenders to withdraw re payments automatically from borrowers’ bank accounts, even yet in states where in actuality the loans are prohibited entirely,” Jessica Silver-Greenberg published when you look at the instances.