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Regulators Should Block Costly Fintech Loans, Advocates Say

  • Coalition sends request to FDIC, two other regulatory agencies
  • Banks are ‘engaging in high-cost predatory lending’: group
Updated on

U.S. regulators should crack down on banks that partner with fintechs to charge interest rates that would be illegal in the lenders’ home states, a coalition of advocacy groups said.

The Federal Deposit Insurance Corp. and other U.S. agencies need to stop banks they oversee from “engaging in high-cost predatory lending” through their work with financial-technology firms, the National Community Reinvestment Coalition, Consumer Reports, the NAACP, the Center for Responsible Lending and other groups said in a letter Friday.