= Subscriber content; or subscribe now to access all American Banker content.

The Automatic Debit That Can't Be Turned Off and Other Consumer Loan Nightmares

FEB 25, 2013 8:56am ET

Receiving Wide Coverage ... Consumer Debt Traps: The lead front-page story in Sunday's Times examined large banks' role in supporting online payday lenders that get around state interest-rate restrictions by locating offshore. At issue is the banks' automatic debiting of borrowers' accounts to pay the interest, authorized by the customers when they take out the loans. The problem is that the banks often continue to withdraw money to pay the loans even after accountholders ask them…

Morning Scan Plus is available to Premium Subscribers only.
To continue, please or subscribe
  • Full access to banking's most comprehensive daily report
  • Daily, weekly, and topic-based newsletters and alerts
  • Award-winning analysis and insight, focused on bankers' key concerns
No credit card needed
All subscription content plus:
  • Bimonthly industry research reports (including archive)
  • Morning Scan Plus e‑newsletter
  • Full access to 2016: The Candidates, the Issues
Have an account?
Remember me