Out-of-State Bank revives predatory Payday Lending practices in NC

Regions Financial Corp. CEO Grayson Hall told shareholders in 2011 that Alabama's largest bank isn't recovering from the economic downturn as rapidly as he would've liked because of an outbreak of tornadoes and because the Dodd-Frank Wall Street Reform and Consumer Protection Act increased oversight of banks, and other measures placed strict new rules on credit card practices and some fees.

So the bank has turned to other, still legal, forms of squeezing customers.

The Regions Bank, which has seven branches in NC, uses loopholes to bring back payday lending. It is illegal for NC banks and non-banking businesses to engage in this predatory form of lending, thanks to the previous NC Legislature and Attorney General Roy Cooper. However, it is not against the law for banks that are headquartered outside of NC to do so as they operate based on their home state's regulations, not ours. Regions offers "Ready Advance" to their cusotmers, which is a line of revolving credit with fees that could add up to an APR of more than 300 percent!

http://wfae.org/post/regions-bank-sneaks-payday-lending-nc

Comments

Art Pope would be proud

This is just the kind of "service" he believes is so important to offer those least able to afford it. When your business model is built on preying on poor people, there's just no end to the free market fantasies you can dream up!