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NCRC has joined with Americans for Financial Reform, the National Consumer Law Center, the Center for Responsible Lending, and the Consumer Federation of America, the Humane Society of the United States, and numerous other advocacy groups in a campaign to Stop the Debt Trap. Join us in urging the FDIC to change its rules.

Tell the FDIC: Stop the Growing Threat of Rent-A-Bank Schemes Now!

Target: The Federal Deposit Insurance Corporation

Stop the Payday Loan Debt Trap logo

Predatory lenders have tried to evade anti-usury laws as far back as the early 1800s. Their latest tactic is the “Rent-a-Bank Scheme”.

Now, 42 states and DC currently have at least one predatory lender using a Rent-A-bank Scheme to evade the law and make 100% to 225% APR loans that are illegal in those states. Rent-a-bank loans are offered at check cashing stores, online and even at pet stores, auto mechanics and furniture stores.

The FDIC can fix this.

It can stop six rogue banks – Capital Community Bank, FinWise Bank, First Electronic Bank, Lead Bank, Republic Bank & Trust and Transportation Alliance Bank – from disguising loans from predatory lenders to help them evade the law.

The FDIC can protect consumers, especially low wage earning working families, and stop the growing threat of Rent-A-Bank schemes immediately. Please join the fight by signing the petition now.

fdic-rent-bank-supporters

To: The Federal Deposit Insurance Corporation

Rent-A-Bank schemes by FDIC-supervised banks are helping predatory lenders make loans up to 225% APR that are illegal in almost every state.

The typical predatory loan borrower will make payments for months that go mostly to interest and do little to pay off the loan. Banks supervised by the FDIC are using Rent-A-Bank schemes that trap borrowers in long debt cycles and disguise loans that are illegal.

I urge the FDIC to stop Capital Community Bank, FinWise Bank, First Electronic Bank, Lead Bank, Republic Bank & Trust and Transportation Alliance Bank and any other bank from fronting for predatory lenders evading state interest rate limits.

Sincerely,

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