State AGs ask FDIC to discourage banks from partnering with payday lenders

29 January 2019 9:34pm
Attorneys general from California, New York and 11 other states asked the US Federal Deposit Insurance Corporation to discourage banks from partnering with payday lenders seeking to skirt interest-rate ceilings.

“State-chartered banks should be wary of entering relationships with fringe lenders that are structured to evade state rate caps,” the group of Democratic attorneys general said in a letter last week.

Payday lenders have recently been trying to associate with traditional banks that aren’t subject to ceilings on interest rates charged to customers, said the letter, also signed by the District of Columbia attorney general.