Payday Advance Lenders Supported by Major Banks
By Paul RizzoPayday Loan Writer
Seven significant faxless payday loan chains are extensively bankrolled by brand name banks.
Bank Of America, Chase, WellsFargo, U.S. Bancorp, and Wachovia all extend tens to hundreds of million dollars in lines of credit to these predatory lenders who charge several hundred percent interest on payday advances, often made to the poor and uneducated.
The chart above shows the who and how. It’s a rework of a chart in the appendix of a report by the National Consumer Law Center, who got its data from SEC filings and exhibits.
While companies are in business to make a profit, you can’t help but wonder: if there’s nothing wrong with payday loans, why don’t these banks offer it at their branches?