California Reinvestment Coalition

ABC 7 On Your Side Segment Exposes Wells Fargo Payday Product

Published January 24, 2013 16:58

January 16, 2013-- Wells Fargo's "Direct Deposit Advance" product is a payday-like product that costs their customers 180% APR. This so-called emergency loan sucks people into a debt trap that is impossible to pay off. CRC has been advocating for Wells Fargo to stop offering payday loans to its customers, and most recently reported this problem to the Office of the Comptroller of the Currency (OCC) and the Consumer Financial Protection Bureau (CFPB) on the bank's Community Reinvestment Exam. One California borrower, Annette Smith, bravely came forward to share how she got stuck in Wells Fargo's debt trap. Watch this important video to see how Wells Fargo's product acts like the payday products offered at corner stores.

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CRC has a membership of over 300 nonprofit organizations and public agencies across the State.