‘Rent-a-banks’ involving Utah high-interest lending falling under scrutiny of Congress

By | 11월 28th, 2020|Categories: Direct Lender Personal Loans In Mississippi|

‘Rent-a-banks’ involving Utah high-interest lending falling under scrutiny of Congress Customer teams say that high-interest loan providers — who issue such things as payday or vehicle title loans — are using a way that is novel evade state interest caps nationwide: They partner with banking institutions in Utah, which sets no limitation on rates. In exactly what the teams call a “rent-a-bank scheme,” such loan providers solicit, structure and gather on loans that charge as much as 222per cent annual interest — however their partner banking institutions in Utah theoretically problem or contain the loans to evade caps somewhere else. Groups attacked the partnerships in congressional testimony Wednesday along side three Utah banks they do say are participating: FinWise, Capital Community Bank and TAB Bank. […]