This follwoing report from National individuals Action traces connections amongst the payday lenders that are largest and Wall Street banking institutions, including funding arrangements, leadership ties, assets, and shared techniques. Listed below are a few of the reportвЂ™s key findings:
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Cash advance organizations rely greatly on funding from big banking best online title loans in Tennessee institutions, including
Wells Fargo, Bank of America, and JPMorgan.
* Big banks provide $1.5 billion in credit to publicly held pay day loan companies,
as well as a predicted $2.5-3 billion to your industry all together.
* Wells Fargo funds more payday loan providers than every other big bank вЂ“ six of this
eight biggest lenders that are payday. Bank of America, JPMorgan Chase, and United States Bank
additionally fund the operations of major payday lenders. Bank of America and Wells
Fargo supplied critical early funding to your biggest payday loan provider, Advance
America, fueling the development associated with the industry.
* Publicly traded lenders that are payday nearly $70 million in interest cost on
financial obligation вЂ“ an indicator of exactly just just exactly just how banks that are much profiting by extending credit to
* Some banks usually do not provide to payday loan providers because of вЂњreputational dangersвЂќ