Wednesday, August 03, 2011

Corporate Predators Prey On Consumers


As the Great Recession drags on, the Big Banks are looking for new ways to suck more money from the wallets of struggling consumers. Call it “trickle up” economics.
These banks are adopting the predatory tactics of “payday” lenders that trap consumers in cycles of high-cost debt, saddling them with triple-digit interest rates and draining their checking accounts through unfair fees.
But the Consumer Financial Protection Bureau (CFPB), the Office of the Comptroller of the Currency (OCC) and other bank regulators have the authority to crack down on these abusive practices.
Tell the OCC to crack down on predatory banking.

This week, the OCC wants to hear comments from the public regarding two predatory banking practices: overdraft programs and “deposit-advance products,” which are bank payday loans.
Instead of charging consumers for overdrafts, banks can easily give consumers the opportunity to decline the purchase for no fee when they lack sufficient funds.
Banks should be banned from peddling predatory “payday” loans. Instead of preying on consumers, banks should provide responsible small loans, free of tricks and traps.
You can bet the OCC is hearing from lobbyists representing banks engaging in these predatory practices – banks like Wells Fargo, Regions Bank, Fifth Third Bank, U.S. Bank and Guaranty Bank.

Oppose the tricks and traps of “trickle up.” Make sure the bank regulators hear from you.

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posted by TimingLogic at 11:57 AM