The payday loan industry has often been criticized by many people. Legislation and regulations have been passed at the federal, state and municipality levels to impose restrictions and control their operations. But did you know that many regional and even national banks too are also in the business of offering payday loans? They often disguise them under an appealing name, but in effect, they are nothing different than the payday loans offered by the many storefront and online operators.
Yes, the short-term lending solutions of banks to meet a financial shortfall are nothing different than payday loans.
At least 6 banks were involved with payday lending. These loans were offered to their checking account customers. For instance, this is what the website of Wells Fargo says, “If you’re facing loan payments, medical expenses, or repair costs you just can’t afford … Apply for a loan”. Incidentally, this is like the same language payday lenders use.
Charges of Banks Much Like the Payday Loan Industry