‘Rent-a-Bank, Rent-a-Tribe’

‘Rent-a-Bank, Rent-a-Tribe’

Very little is straightforward concerning the battles which were waged on the previous ten years and a half over just exactly how payday lenders conduct business.

Within the 1990s, as some states started limits that are enforcing whatever they could charge, many payday lenders teamed with out-of-state banks to evade interest-rate caps in states with strict limitations on finance costs.

Under federal legislation, a state-chartered bank could “export” rates of interest permitted in its home state to a different state — utilizing one state’s free interest-rate rules in order to make loans in a situation where interest levels had been capped. Continue reading “‘Rent-a-Bank, Rent-a-Tribe’”