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U.S. Senators Call For End To "Payday" Loans

Per The Consumerist:

"Four of the nation’s largest banks — Wells Fargo, Fifth Third Bank, U.S. Bank and Regions Bank — are involved in high-interest, short-term loans that may not always be called 'payday' loans but might as well be. Thus, a group of five U.S. senators have asked regulators to put a stop to the practice altogether.

"Last week, Senator Richard Blumenthal of Connecticut sent a letter — also signed by Sen. Richard Durbin of Illinois, Sen. Chuck Schumer from New York, Sen. Sherrod Brown of Ohio and Sen. Tom Udall from New Mexico — to Federal Reserve Chairman Ben Bernanke, FDIC Chairman Martin Gruenberg and Comptroller of the Currency Thomas Curry, calling on them to use their authority to end the payday lending by federally regulated banks, which is already illegal in 14 states and can not be offered to active-duty U.S. servicemembers.

“'These bank payday loans are widely recognized as predatory products designed to trap low-income consumers in a cycle of debt,' reads the letter."

More after the jump...