(Washington, DC) – Today, U.S. Senator Richard Blumenthal (D-Conn.) issued the following statement praising the Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC) for cracking down on bank payday lending:
“I want to commend both the OCC and the FDIC for sending a clear statement to our nation’s banks with today’s new guidance: payday lending carries real risks for consumers and for our financial system. So-called ‘deposit advance loans,’ which average over 300 percent in annualized interest, trap vulnerable families in cycles of debt and desperation. Banks are now on notice that if they continue engaging in these predatory practices, the regulators will take notice and take action. While more remains to be done, today is a good day for consumers in America.”
In January of this year, Blumenthal led a letter with four other Senators to the OCC, the FDIC, and the Federal Reserve, expressing concern about predatory lending by banks and asking the agencies to crack down on such practices.