Durbin welcomes limits on payday-style loans
U.S. Sen. Dick Durbin says he’s glad regulators are taking a hard look at the loans offered by some large banks that are structured like payday loans.
Durbin spoke Friday at an event in Chicago. He praised a report this week from the Consumer Financial Protection Bureau on how payday loans often lead to crushing debt for consumers. The report says interest rates on payday loans can exceed 300 percent.
Also this week, the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency proposed ways of tightening rules on the worst payday lending practices among the banks they regulate.
Durbin’s office says several large banks now offer what they call “deposit advance” loans, which are structured like payday loans.
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