Minneapolis Star Tribune: Big banks provide cash for payday loans
May 17, 2013
Fast cash is a few clicks away for Minnesotans at the popular CashNetUSA website, where a two-week loan for $100 carries an annual percentage rate of about 390 percent.
To many critics, the terms are outrageous and usurious. But they are typical in the world of high-cost short-term consumer loans, or payday lending, and legal in Minnesota.
In fact, the business is supported by some of the nation’s largest commercial banks. A syndicate including Wells Fargo & Co. andMinneapolis-based U.S. Bancorp provides CashNetUSA’s parent $330 million in financing, government documents show. Read more here.