NEW YORK — Major banks have quickly become behind-the-scenes allies of a raft of Internet-based payday lenders that offer short-term loans with interest rates sometimes exceeding 500 percent.
With 15 states banning payday loans, a growing number of the lenders have set up online operations in more hospitable states or far-flung locales like Belize, Malta, and the West Indies to more easily evade statewide caps on interest rates.
Comments
Remember when the banker was the pillar of the community? The person your parents taught you to always trust? Remember the banker who gave you a break on the loan for your first car? No? Me either...Now, this connection comes up. A frend's daughter lost everything to a payday loan business.
Now that we sent a strong consumer advocate sent to sent hope she does something useful!!!
That's why they're called "banksters!"
This was in the leftie rags a year ago. Major banks are the prime source of LEGAL capital for payday lenders. Illegal money laundering is another major source.. Liz isright , throw a few of these bums in jail and we will have a better system.