HOPE Submits Reviews to FDIC Rent-a-Bank Proposals
HOPE is just a credit union, community development standard bank and policy institute that delivers affordable economic solutions; leverages personal, public and philanthropic resources; and partcipates in policy analysis to meet its objective of strengthening communities, building assets, and increasing everyday lives in economically distressed areas throughout Alabama, Arkansas, Louisiana, Mississippi and Tennessee. Over the past 25 years, HOPE has produced over $2 billion in funding that includes benefited one or more million people.
Because of the experiences of our users, described herein, our company is worried that the FDIC proposals will enhance, instead than alleviate, the burdens of high-cost financing in our area. In four for the five states inside our impact, high-cost loan providers, such as for example payday and vehicle name loan providers, happen to be saturating our communities. For instance, in 2017 in Tennessee, there have been over 1,200 loan that is payday, significantly more than McDonaldвЂ™s and Walmart areas combined. 1 with regards to charges drained by payday and vehicle name loan providers, Mississippi, Alabama, Louisiana, and Tennessee have been in the most notable ten states, and high-cost loan providers strain a lot more than $1.6 billion each year from low-income borrowers during these four states. 2