Seven big 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 cash 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 in turn got their data from SEC filings and exhibits.
Kinda like finding out the hardware store owner sells crack on the side.
While companies are in business to make a profit, you gotta wonder, if there’s nothing wrong with payday loans, why don’t these banks offer it at their branches? — BEN POPKEN
UTILITIES AND PAYDAY LENDERS: CONVENIENT PAYMENTS, KILLER LOANS [National Consumer Law Report]