U.S. Bank loan seems predatory

Print Article

My church, First Congregational, has been banking with U.S. Bank for decades. We have also been at the forefront of protecting Montanans from predatory loan products, like payday and car-title loans. In Montana, we won, through a citizen vote, an interest rate cap at 36 percent for payday loans in 2010. Since then, Montanans save an estimated $37 million annually.

It has come to my attention that U.S. Bank has started offering small dollar bank loans that look awfully similar to payday loans. People are often strapped enough for cash that they need help paying for car maintenance and hospital bills, but this new bank loan comes with an extraordinarily high interest rate of up to 88 percent, well above our state interest rate cap. States cannot regulate a federally insured bank’s interest rates, and thus U.S. Bank feels like they can abuse Montana families. The Office of the Comptroller of the Currency (OCC), which regulates U.S. Bank, says that banks should “treat customers fairly” and points out that products should “support borrower affordability and successful repayment.”

I don’t know about you, but 88 percent interest doesn’t seem “fair” to me. I hope the OCC looks into U.S. Bank. Banks should not get a free pass to charge Montanans high interest rates on loans when we won protections from similar payday loan products. Montanans agree 36 percent interest is fair to both the consumer and the lender.

U.S. Bank should stop stealing from our friends and families, and stick to products that are fair for Montanans.

—Barbara Gulick,

Billings

Print Article

Read More Letters to the Editor

Our kids set a great example

November 09, 2018 at 5:00 am | Western News Recently I had the honor of working the Kootenai Rotary Trunk or Treat event at Central School. My sister witches and I love doing this outreach event for our community; seeing all of the kids dresse...

Comments

Read More

Don’t vote for the ‘untouchables’

November 01, 2018 at 4:04 pm | Western News How can you vote for a man who won’t shake your hand? U S. Rep. Greg Gianforte, U.S. Sen. Steve Daines and State Auditor and senatorial candidate Matt Rosendale have fled the time-honored public meet...

Comments

Read More

Tester protects interests of servicemembers

November 01, 2018 at 4:03 pm | Western News Forty-six U.S. Representatives, 49 U.S. Senators and 33 state attorney generals, including Democrats, Republicans and Independents, signed letters defending the Military Lending Act, which was passed...

Comments

Read More

Vote yes on I-185 to help the needy

November 01, 2018 at 4:03 pm | Western News As a senior citizen and concerned caregiver, I feel we must vote to keep funds from being cut or canceled for Montanans who need them most. Things like home-based caregiving and Medicaid-funded servi...

Comments

Read More

Contact Us

(406) 293-4124
311 California Ave.
Libby, MT 59923

©2018 The Western News Terms of Use Privacy Policy
X
X