Sign the petition: Demand the FDIC crack down on ‘rent-a-bank schemes’
FDIC
When predatory lenders are located in a state with strict laws preventing high interest loan rates, they can circumvent those laws by partnering with an out of state bank without the same high interest loan restriction.
This is called a "rent-a-bank scheme." And it results in predatory lenders STILL issuing high interest loans of up to 160% APR, despite local efforts to limit the practice of banks and payday lenders preying on vulnerable people.
Predatory lenders are working hard to go around efforts to restrict their deplorable practices and we MUST stop them by demanding bank regulators severe ties with the banks involved.
In the early 2000s bank regulators like the Federal Deposit Insurance Corporation(FDIC) ended most of the ‘Rent-a-bank’ schemes by cutting ties with banks involved in the predatory practice. Now under the lousy Trump Administration the practice is occuring again.
It is no surprise that the Trump administration is resurrecting a predatory practice that negatively impacts black and brown communities and folks desperate for help because of an unexpected emergency.
We know this administration is complicit in vulnerable people suffering so we MUST stop them before they allow this practice to grow further.
FinWise Bank (based out of Utah) and Republic Bank (based out of Kentucky) are both regulated by the FDIC and are the main culprits in current rent-bank-schemes. The two banks work with predatory lenders across the country to issue high interest loans that capitalize on people’s financial crises.
If these two banks are not stopped then more banks will get involved in rent-a-bank schemes. Please add your name today to demand the FDIC cut ties with these two banks and put an end to rent-a-bank schemes before it grows further.
Sign the petition: Demand the FDIC crack down on ‘rent-a-bank schemes’.
This is called a "rent-a-bank scheme." And it results in predatory lenders STILL issuing high interest loans of up to 160% APR, despite local efforts to limit the practice of banks and payday lenders preying on vulnerable people.
Predatory lenders are working hard to go around efforts to restrict their deplorable practices and we MUST stop them by demanding bank regulators severe ties with the banks involved.
In the early 2000s bank regulators like the Federal Deposit Insurance Corporation(FDIC) ended most of the ‘Rent-a-bank’ schemes by cutting ties with banks involved in the predatory practice. Now under the lousy Trump Administration the practice is occuring again.
It is no surprise that the Trump administration is resurrecting a predatory practice that negatively impacts black and brown communities and folks desperate for help because of an unexpected emergency.
We know this administration is complicit in vulnerable people suffering so we MUST stop them before they allow this practice to grow further.
FinWise Bank (based out of Utah) and Republic Bank (based out of Kentucky) are both regulated by the FDIC and are the main culprits in current rent-bank-schemes. The two banks work with predatory lenders across the country to issue high interest loans that capitalize on people’s financial crises.
If these two banks are not stopped then more banks will get involved in rent-a-bank schemes. Please add your name today to demand the FDIC cut ties with these two banks and put an end to rent-a-bank schemes before it grows further.
Sign the petition: Demand the FDIC crack down on ‘rent-a-bank schemes’.
Sponsored by
To:
FDIC
From:
[Your Name]
Strict restrictions against high interest loans exist to prevent predatory lenders from preying on vulnerable people. Lenders should not be able to go around those restrictions in partnership with FDIC regulated banks. We demand you cut ties with FinWise and Republic banks immediately and end rent-a-bank schemes for good.