Payday lenders have long blamed bias at federal agencies for banks’ decisions to end their reports, but professionals at certainly one of the nation’s largest high-cost lenders acknowledged an even more complicated truth in newly released e-mails.
While Advance America, a quick payday loan string that runs in 28 states, had been accusing regulatory officials of strong-arming banking institutions to cut ties with payday loan providers, top professionals in the Spartanburg, S.C.-based business had been citing bankers’ concerns about anti-money-laundering conformity.
The email messages were released by the banking regulators in court filings that rebut the payday lenders’ allegations of misconduct.
Companies that provide high-cost, short-term loans to customers have accused the Federal Deposit Insurance Corp. as well as the workplace regarding the Comptroller for the Currency of waging a stealth campaign — with the Department of Justice’s process Choke aim — to shut them from the bank operating system. Continue reading