American Banker: Message to FDIC’s new leaders: Crack down on ‘rent a bank’ loans

American Banker, February 4, 2022, Message to FDIC’s new leaders: Crack down on ‘rent a bank’ loans

Consumers advocates are asking new leaders at the Federal Deposit Insurance Corp. to cut off partnerships between banks and fintechs that result in borrowers paying annual interest rates as high as 225%.

Fifteen consumer groups called for the crackdown in a letter to Democratic appointees on the FDIC board, as Chair Jelena McWilliams, a Republican appointee, prepared to step down Friday.

Co-signers of the letter included the National Community Reinvestment Coalition, the Center for Responsible Lending, the Consumer Federation of America, the NAACP and the Latino civil rights group UnidosUS.