Who is enabling payday predators?

 From NewsBreak:

The District of Columbia yesterday announced a settlement with online lender Elevate that will refund millions of dollars to consumers. The agreement was reached as a result of Elevate violating interest rate caps in DC — the maximum rate for a loan there is 24%.

Loans at 99% to 251% Interest?!?. Rent-a-bank lender Elevate pays $4… | by Andy Spears | Feb, 2022 | Medium

In order to get around the rate cap, Elevate partnered with a Utah bank known as FinWise. Utah’s ABC4 has more:

Elevate Credit, Inc. (Elevate) was laundering loans with up 149% APR to D.C. consumers through Utah FinWise Bank to evade DC’s interest rate limits.

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Banks Fronting for Legalized Loan Sharks

 From NewsBreak: 

The Consumer Federation of America (CFA) was joined by more than a dozen other consumer advocacy groups in calling on the Federal Deposit Insurance Corporation (FDIC) to take action against predatory lending.

“Last year, Congress took a stand against the harmful rent-a-bank model that is being used by predatory payday and installment lenders to make triple-digit interest rate loans that are illegal across the country by overturning the “fake lender” rule,” said Rachel Gittleman, Financial Services Outreach Manager with Consumer Federation of America. “But rent-a-bank lenders are alive and well, using a few FDIC-regulated banks to peddle predatory loans to consumers throughout the country. The FDIC must stop permitting its supervised banks from engaging in this harmful behavior.”

In a letter, the groups said:

“FDIC-supervised banks are helping predatory lenders make loans up to 225% APR that are illegal in almost every state. 

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Bank of America to End NSF Fees, Reduce Overdraft Charges

 From NewsBreak:

Bank of America announced today it is significantly reducing overdraft fees and eliminating non-sufficient funds fees, with the reforms starting in February.

“Over the last decade, we have made significant changes to our overdraft services and solutions, reducing clients’ reliance on overdraft, and providing resources to help clients manage their deposit accounts and overall finances responsibly,” said Holly O’Neill, President of Retail Banking, Bank of America. “Throughout the process we have engaged our National Community Advisory Council (NCAC) for their guidance and feedback on our changes. These latest steps will further support our clients and empower them to create long-term financial wellness.”

The policy changes mean all NSF fees will be eliminated in February and the fee for overdrafts will be reduced from $35 to $10 starting in May.

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Macon Bank & Trust Announces Holiday Hours

 From Twitter:

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Reining-in Big Banks

 A NewsBreak story on efforts to prevent another financial crisis by warding off bank consolidation:

Following an announcement from the Consumer Financial Protection Bureau (CFPB) and Federal Deposit Insurance Corporation (FDIC) that the bank regulators are taking action to review the current bank merger process, consumer advocates at the Woodstock Institute highlighted the potential benefits of this action.

Woodstock Institute joins other consumer groups, including Americans for Financial Reform (AFR) in welcoming a comprehensive review of current bank merger practices.

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Preventing Banking Monopolies

 From NewsBreak:

Consumer Financial Protection Bureau (CFPB) Director Rohit Chopra and FDIC Chair Martin Gruenberg yesterday issued a joint statement on the need for additional scrutiny of bank mergers. The effort is designed to prevent banking monopolies and the consolidation of banks that leads to “too big to fail” entities.

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Regulatory Board May Take Action on Overdraft Fees

 From NewsBreak:

At a speech to the Consumer Federation of America this week, acting Comptroller of the Treasury Michael Hsu outlined some key reforms his agency sees as necessary when it comes to banking — particularly around overdraft fees.

The speech comes as Capital One announced an end to the practice of collecting overdraft fees. Additionally, as American Banker reports, JPMorgan Chase is making some key changes to its overdraft fee policies.

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A Call for Banking Reform

 As one major bank — Capital One — announced an end to the practice of charging overdraft fees, a leading consumer group is issuing a call for federal action to end the practice at all banks.

Americans for Financial Reform (AFR)is calling on the Consumer Financial Protection Bureau (CFPB) to use data from a study it conducted to draft rules that would essentially prohibit overdraft fees.

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Should Banks End Overdraft Fees?

 Advocates at Consumer Federation of America (CFA) are calling on banks across the nation — especially the biggest banks with the greatest reach — to end the practice of charging fees for overdrafts. The push from CFA comes a day after Capital One announced it will stop charging the fees.

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