Rent-a-Bank Schemes and New Debt Traps: Assessing Efforts to Evade State Consumer Protections and Interest Rate Cap
Today we are facing the biggest threat in decades to states‘ historic power to prevent predatory lending: ―Rent-a-bank lending, where state-regulated lenders launder their loans up to 160% annual percentage rate (APR) through banks in order to evade state interest rate caps. These schemes are spreading around the country and are starting to explode. Payday…