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Payday loan provider’s email messages tell a different tale on Choke aim

January 21st, 2020

Payday loan providers have long blamed bias at federal agencies for banking institutions’ decisions to end their reports, but professionals at certainly one of the nation’s largest high-cost lenders acknowledged a far more complicated truth in newly released email messages.

A payday loan chain that operates in 28 states, was accusing regulatory officials of strong-arming banks to cut ties with payday lenders, top executives at the Spartanburg, S.C.-based company were citing bankers’ concerns about anti-money-laundering compliance while Advance America.

The email messages had been 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 actually accused the Federal Deposit Insurance Corp. in addition to Office regarding the Comptroller for the Currency of waging a stealth campaign — with the Department of Justice’s process Choke aim — to shut them out from the bank operating system.

The payday lenders have uncovered evidence that some Obama-era regulatory officials were hostile to their industry during a four-year legal battle. Most of the payday industry’s criticism has dedicated to the FDIC in specific.

However in court documents which were unsealed on Friday, the FDIC pointed to anti-money-laundering conformity issues — instead of any individual vendettas — to spell out why specific payday lenders destroyed a number of their bank reports. » Read more: Payday loan provider’s email messages tell a different tale on Choke aim