Big banking institutions help payday lenders offer fast money at high costs

Big banking institutions help payday lenders offer fast money at high costs

Bay area has 32 of California’s significantly more than 2,000 cash advance outlets. Picture by Jason Winshell/Public Press

COMPANY: Wells Fargo, Credit Suisse among biggest backers of lucrative low-finance companies

Even while the Occupy bay area encampment in the base of marketplace Street indicated outrage at big banking institutions and high finance, it stayed company as always at a few of the city’s less glamorous financial establishments.

High-interest, unsecured “payday” loans are plentiful at 32 establishments along marketplace Street plus in low-income communities all over town. Many people with bank reports qualify.

These stark storefronts — where hard-pressed customers make to speak with clerks behind Plexiglas windows and submit an application for high-cost payday advances — may appear unconnected to Wall Street.

But while their names and brands are nowhere to be seen, banking institutions and rich investors based right here or in remote monetary enclaves like Manhattan or Zurich offer funds to or very very own stakes in certain of San Francisco’s biggest payday lenders.Continue reading