Pay day loans on prepaid scheme exposed
Any office of the Comptroller regarding the Currency, a bank that is federal, determined that prepaid credit card issuer Urban Trust Bank and payday loan provider CheckSmart Inc. evaded state payday and usury legislation in Arizona and Ohio by loading pay day loans on prepaid cards. The OCC stated Orlando, Fla.-based UTB decided to correct the violations, submit to a review of the prepaid credit card program, and submit to an OCC report about the financial institution’s business strategy to deal with too little its oversight of CheckSmart.
a coalition of customer advocacy teams led by The nationwide Consumer Law Center urged the OCC to turn off CheckSmart’s pay day loan system. This program had been facilitated with UTB-issued Insight cards that are prepaid handled by Insight Card Services LLC, that will be partly owned by Dublin, Ohio-based Community solution Financial https://pdqtitleloans.com Inc. (more…)