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Payday loan providers have finally developed a much more innovative and distressing possible barrier to accountability.

Payday loan providers have finally developed a much more innovative and distressing possible barrier to accountability.

The agency happens to be drafting proposed laws and it is anticipated to announce them quickly.

  • Rent-A-Bank

A barrier that is second accountability payday loan providers have actually attempted to build could be the “rent-a-bank” scheme – where payday loan providers consent to provide a tiny percentage of their earnings to federally insured banking institutions chartered in states without any or quite high rate of interest restrictions and then claim the exemption off their states’ usury guidelines that people banking institutions have actually.