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Banks Come Under Fire For Completing The Cash Advance Gap

Banks Come Under Fire For Completing The Cash Advance Gap

A cash advance is an expensive type of credit working from the fringes of this economy. This is exactly why the mark of the crackdown that is new federal regulators may shock you: in place of a forlorn-looking storefront by having a garish neon indication, it is your familiar community bank.

A tiny but growing quantity of banking institutions, including some major players, have already been providing the same in principle as pay day loans, calling them “deposit advances.”

That is, at the least, until bank regulators stepped in Nov. 21 and place new limitations on the loans.

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