HOPE Submits Remarks to FDIC Rent-a-Bank Proposals
HOPE is a credit union, community development standard bank and policy institute providing you with affordable economic solutions; leverages personal, public and philanthropic resources; and partcipates in policy analysis to meet its objective of strengthening communities, building assets, and enhancing life in economically Lancaster payday loans near me troubled areas throughout Alabama, Arkansas, Louisiana, Mississippi and Tennessee. During the last 25 years, HOPE has produced over $2 billion in funding which have benefited one or more million people.
Provided the experiences of our users, described herein, our company is worried that the FDIC proposals will rather add to than alleviate, the burdens of high-cost financing within our area. In four associated with the five states inside our impact, high-cost loan providers, such as for example payday and vehicle name loan providers, are generally saturating our communities. As an example, in 2017 in Tennessee, there have been over 1,200 pay day loan storefronts, a lot more than McDonaldвЂ™s and Walmart places combined. 1 when it comes to costs drained by payday and vehicle name loan providers, Mississippi, Alabama, Louisiana, and Tennessee have been in the most notable ten states, and high-cost loan providers strain a lot more than $1.6 billion each year from low-income borrowers within these four states. 2
In four states within our area, you will find at the least two high-cost loan providers making these loans through the bank partnership arrangement. ( dining dining dining Table 1) The FDIC proposition boosts the dangers that more high-cost loan providers will draw out extra costs, along with the prepared support of partnering banks.Continue reading