Predatory lending is an easily overlooked business that has damaged communities of color and poorer people for decades. It traps borrowers in never-ending cycles of debt with high-interest loans on coercive terms. But when Wall Street private equity gets in on the predatory lending industry, it amplifies the magnitude of financial exploitation.
Source: How Private Equity Amplifies the Abuse of Predatory Lending – CounterPunch.org
Their concern is that the “true lender” rule—one of the last moves by the Trump-era Office of the Comptroller of the Currency, a federal office that supervises nationally chartered banks—upends more than a century of legal precedent to make it easy for non-bank financial institutions, like payday lenders or fintech companies, to evade state-level interest limits, lending at sky-high rates and trapping low-income customers in debt.
Welcome to the lucrative, predatory world of subprime car loans.
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