Sens. Want Banks Barred From Payday Lending

Law360, New York (January 10, 2013, 5:26 PM EST) -- A group of five Democratic senators on Wednesday urged federal banking regulators to stop banks from issuing so-called "advance" loans that carry the same characteristics as payday loans.

In a letter to the Federal Reserve, the Federal Deposit Insurance Corp. and the Office of the Comptroller of the Currency, the senators, led by Sen. Richard Blumenthal, D-Conn., said that the advance loans are "predatory products" targeting low-income borrowers. 

The regulators are "compelled" to stop the banks they supervise from making such loans and to prevent other...
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