A special regulator are engaging in brand new ‘rent-a-bank’ band
A special regulator are instant payday loans online engaging in brand new 'rent-a-bank' band Consumer teams moving having banking government to compromise upon thus-named book-a-lender credit private money possess discovered a ready watchdog. Zixta Martinez, deputy movie director of one's Consumer Economic Shelter Bureau, told you at the a recent individual group conference that service is actually providing good "close look" at credit partnerships anywhere between financial institutions and you can nonbanks, which can be fintech companies. "Certain loan providers with their lease-a-bank strategies enjoys surprisingly high standard rates, and that raise questions about if their products put borrowers right up having failure," erica's construction. "And you will our grievances database reveals a variety of almost every other significant user security concerns that have specific funds associated with the lender…
