FDIC, Fed Must Face Payday Lenders' ‘Choke Point’ Lawsuit
- Federal judge declines to dismiss lawsuit from payday lenders
- Short-term lenders say U.S. pressuring banks to cut them off
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U.S. banking regulators must defend a lawsuit brought by the Community Financial Services Association of America Ltd., the main payday-lending trade group, accusing them of applying “back-room pressure” on banks to stop serving its members.
A federal judge on Friday refused to dismiss the suit against the Federal Deposit Insurance Corp., the Federal Reserve and the Office of the Comptroller of Currency. U.S. District Judge Gladys Kessler in Washington threw out some claims while allowing others to go forward.