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Justice Department Inquiry Takes Aim
at Banks’ Business With Payday Lenders

New York Times, by Jessica Silver-Greenberg

Original Article

Posted By:LittleHoodedMonk, 1/26/2014 10:46:11 PM

Federal prosecutors are trying to thwart the easy access that predatory lenders and dubious online merchants have to Americans’ bank accounts by going after banks that fail to meet their obligations as gatekeepers to the United States financial system. The Justice Department is weighing civil and criminal actions against dozens of banks, sending out subpoenas to more than 50 payment processors and the banks that do business with them, according to government officials. In the new initiative, called “Operation Choke Point,” the agency is scrutinizing banks both big and small over whether they, in exchange for handsome fees, enable businesses

Comments:
While this "legal" usury has been going on since before I was in the Military in the 60´s, in today´s 0bamanomics, it´s even worst for those unable to find work (or quit looking).

      


Post Reply  

Reply 1 - Posted by: 4justice, 1/27/2014 12:27:22 AM     (No. 9706924)

Say what you will, but those loans can be lifesavers. The people complaining like the guy with the Wells Fargo account put himself in the hole and now doesn´t want to pay for those Christmas presents... We don´t need more laws protecting ourselves from our own bad decisions.

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Reply 2 - Posted by: craige, 1/27/2014 9:02:05 AM     (No. 9707211)

More war on the poor. Or poor money managers.

One wonders if this will affect vendors and lenders. Some mortgages have direct deductions from borrower´s accounts. So do vendors of monthly services.



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Reply 3 - Posted by: provide, 1/27/2014 10:05:41 AM     (No. 9707320)

The payday loans will be Federally issued and insured like student loans.

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