[ This is the first in a two-part series adapted from a keynote speech delivered at the annual meeting of the Financial Services Centers of America, a trade group representing nonbank financial services companies. ]
These are hard times for payday lenders and many other alternative financial services companies. Bank regulators as well as the Department of Justice’s Operation Chokepoint are forcing firms offering small-dollar loans, check cashing, money orders and other services vital to working Americans out of the banking system.
The industry’s struggles go way back. More than a decade ago, the Comptroller of the Currency decided to prohibit short-term lenders from distributing their loans through national banks.Posted: Oct 25, 2014