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

‘Rent-a-banks’ involving Utah lending that is <a href="https://cash-central.com/payday-loans-pa/gettysburg/">www.cash-central.com/payday-loans-pa/gettysburg/</a> high-interest under scrutiny of Congress

Customer teams state that high-interest loan providers — who issue such things as payday or automobile title loans — are using a way that is novel evade state rate of interest caps nationwide: They partner with banking institutions in Utah, which places no restriction on prices.

With 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 support the loans to evade caps somewhere else.

Groups attacked the partnerships in congressional testimony along with three Utah banks they say are involved: FinWise, Capital Community Bank and TAB Bank wednesday.

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