Stop Predatory Lenders

FDIC: Crack down on unfair interest-rate schemes!

 

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PETITION TO FDIC

From auto repair companies to furniture stores, consumers are being steered to predatory lenders that leverage front banks to charge up to 189% interest rates even though those rates are normally prohibited under state laws.

We are calling on the FDIC to stop the participation of its supervised banks in the so-called “Rent-a-Bank” scheme — by fronting predatory lending and attempting to circumvent state interest rate limits. In a time of spiking consumer prices, no one should be saddled with outrageous, unfair debt from these lending schemes.

Predatory lenders are circumventing state laws on the books to target people in need of quick cash for things like car repairs. By funneling short-term loans through out-of-state banks, shady lenders can charge interest over 100% while tacking on outrageous fees. It’s called the “Rent-a-Bank” scheme.

The FDIC has the power to stop banks under its supervision from acting as fronts for these shady lenders. Can you sign our petition calling on FDIC officials to stop those participating in the “Rent-a-Bank” scheme now?