Like storefront pay day loans, deposit advance was sold as an intermittent link to a customer’s next payday

Until 2013, a few banks were siphoning huge amount of money yearly from customer account through a€?direct deposit advancea€? – products that shared typical annualized rates of interest all the way to 300percent. But in addition like store payday advances, these bank merchandise jammed consumers in long-lasting, unbearable financial obligation.

Now, amid a tempest of deregulation in Washington, the banking industry is pushing regulators to let them back into the payday lending game. They ought to learn best.

In a recent plan data, the American lenders Association labeled as in the government Deposit insurance coverage Corp. Continue Reading