Payday loans, the report concludes, “create a debt treadmill - TopicsExpress

Payday loans, the report concludes, “create a debt treadmill that makes struggling families worse off than they were before they received a payday loan.” The payday loan industry operates out of storefronts in poor neighborhoods, but a share of its profits filter into some of the nation’s most prestigious banks. Jessica Silver-Greenberg, a banking and consumer finance reporter for The Times, disclosed on Feb. 23 that major banks, including JPMorgan Chase, Bank of America and Wells Fargo, have been acting as key intermediaries, allowing online lenders to directly collect money from the bank accounts of those borrowers who have accounts.

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