Send a Message to Washington: A Payday Loan is a Payday Loan

Federal bank regulators have the power to stop banks from offering debt-trap payday loans. Payday loans don’t help cash-strapped families; they make their financial situation worse.

Like storefront payday loans, bank payday loans are priced at nearly 400% annual interest. Because these loans must be repaid so quickly with funds drawn directly from the borrower’s checking account, they all too often create a cycle of destructive debt.

Sign the petition below to let banking regulators know that the last thing we need is more predatory lending from banks.

 

Some banks break customer trust

THIS PETITION WILL BE SENT TO:

The Honorable Ben S. Bernanke
Chairman
Board of Governors
of the Federal Reserve System
20th Street and Constitution Avenue, NW
Washington, DC 20551

The Honorable Richard Cordray
Director
Consumer Financial Protection Bureau
1500 Pennsylvania Ave. NW
Washington, DC 20220

Mr. Martin Gruenberg
Director
Federal Deposit Insurance Corporation
1776 F Street, NW
Washington, DC  20006

Mr. Thomas Curry
Comptroller
Office of the Comptroller of the Currency
250 E Street, SW
Mail Stop 2-3
Washington, DC 20219

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Petition to End Payday Lending by Banks

Re: Payday lending by banks

Dear Dr. Bernanke, Director Cordray, Chairman Gruenberg, and Comptroller Curry:

Please take immediate action to stop the banks you oversee from making predatory payday loans at annual interest rates typically ranging from 200 300%.

Wells Fargo, U.S. Bank, Fifth Third and Regions Bank are among the banking institutions now marketing payday loans--loans that are just as damaging to borrowers as payday lending by stores. Banks claim they offer short-term relief, but payday loans only make matters worse, trapping borrowers in a cycle of debt that lasts on average 175 days of the year. It is especially troubling that one quarter of bank payday borrowers are older Americans on Social Security.

As our country begins to recover from the economic crisis, the last thing we need is to allow more bad loans. Please act quickly to be sure this predatory product does not become business-as-usual in our nation's banking system.

Sincerely,
[Your Name]
[Your Address]
[City, State ZIP]

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