US Bank needs to rethink "Simple Loans"

US Bank sells “Simple Loans” with 70-88 percent interest in Montana. People take these loans to buy snow tires, cover a mortgage payment, or pay medical bills. Montana law caps predatory payday loans at 36 percent interest. But federally-insured banks are exempt from state laws, and can charge whatever they want to.

These are the kind of bad loans that people never get out of, being offered by one of the biggest national banks. High interest rates leave customers reeling for another loan, trapping them into a cycle of debt. I’m sorry, but if it looks like a payday loan and charges like a payda...

 

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