Tell the FDIC: Stop Triple-Digit Interest Loans for Furniture, Auto Repairs, Puppies, & More!
The Federal Deposit Insurance Corporation
In 42 states and DC, at least one predatory lender is using a rent-a-bank scheme to evade the law and make 100% to 225% APR loans that are illegal in those states. Predatory lenders have tried to evade anti-usury laws for centuries, and funneling loans through FDIC-supervised banks, like Utah’s Transportation Alliance Bank (TAB Bank), represent their latest tactic.
Rent-a-bank loans are offered at check cashing stores, online and at pet stores, auto mechanics and furniture stores – dramatically increasing the total cost of unexpected auto repairs, essential home furnishings, and even a family pet. And when offered at pet stores, these loans help fund puppy mills that keep dogs in deplorable conditions.
The FDIC must fix this. We are aware of at least six rogue banks the FDIC can act swiftly to stop from disguising loans for predatory lenders to help them evade the law -- Capital Community Bank, FinWise Bank, First Electronic Bank, Lead Bank, Republic Bank & Trust and TAB Bank.
The FDIC can protect consumers, especially low wage earning working families, and stop the rent-a-bank schemes aimed at erasing efforts by states to protect residents from predatory lenders through modest interest rate caps.
Please join us in urging the FDIC to act. Sign the petition now!
The Stop the Debt Trap Coalition unites more than 800 civil rights, consumer, labor, faith, veterans, seniors and community organizations from all 50 states who are fighting to stop predatory lending and establish usury caps that protect consumers nationwide, including these organizational partners:
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To:
The Federal Deposit Insurance Corporation
From:
[Your Name]
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,