Chase Bank deserves a pat on the back today. The giant monster mega-bank has announced they’re pulling support for illegal payday lenders who make loans online with interest rates north of 500%.
The payday lending industry has been enabled by the four biggest banks in the country — Bank of America, Chase, Well Fargo and Citibank.
But Chase is the first one to make the decision they are now here to serve their customers, not the payday lenders.
So Chase will empower customers will a new tool they can use against essentially any payday loan sleazoid who tries to debit their account. Customers will now have the ability to have that debit request returned to sender, with no money leaving your account.
Chase is also going another step further. They will limit the fees they charge you for debits from these sleazy payday lenders that would cause you additional fees from them in the event of an overdraft.
I think these are great decisions by the bank, and they’re long overdue from the other giant banks too. Though so far there has been no change of policy from Bank of America, Well Fargo or Citibank.