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What’s a fair amount of interest to pay on a loan?
Think of your answer, and then ask yourself another question: Could you do business with a bank that you know is charging some customers as much as 365 percent interest on a loan?
That’s exactly what is happening at some corporate mega-banks offering new loan products with names like “Checking Account Advance” or “Direct Deposit Advance.” These products offer a customer an “advance” on the next direct deposit into their checking account, which is then deducted automatically by the bank – at a hugely inflated interest rate – upon their customer’s direct deposit. These are nothing more than payday lending schemes by other names. They carry very little risk for the lending bank (which has control over the direct deposit) while keeping low-income borrowers in an endless cycle of debt and borrowing.
Can you take a moment to send a message to four mega-banks offering payday products, and tell them you don’t approve of their unfair practices?
Please sign on to our letter below, and visit BreakUpWithYourMegabank.org to find a community development bank or credit union with a commitment to treating borrowers fairly.