Thursday, June 21, 2007

Payday Advance Lenders Supported by Major Banks

By Paul Rizzo
Payday 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.

Banks/Payday Lenders

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?

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