FOX West Texas, May 23, 2021, ‘Diabolical and wrong’: Wells Fargo, other banks finance predatory lenders that can charge over 400% interest in minority communities
Payday lenders and other businesses that offer high-cost, small-dollar loans say they serve customers that big, traditional banks ignore.
But a WFAA investigation discovered the money that finances many predatory lenders comes from the very same big banks.
Data that Wells Fargo shares with the federal government that was analyzed by the National Community Reinvestment Coalition show the bank makes relatively few loans to low- to moderate-income borrowers in Dallas County. Their analysis shows that Wells Fargo made 18% of its home purchase loans to low- to moderate- income borrowers, which is third from the bottom among banks in the county.
