Would-be lenders have traditionally attempted to evade state usury legislation utilizing alleged rent-a-bank schemes: An out-of-state bank, which need not adhere to rate of interest caps when you look at the payday lender’s state, will act as a front side when it comes to business that is really behind a high-interest loan so it couldn’t legally make it self. In return for “renting” itself away in this way—expending little effort and using small danger into the process—the bank gets a little cut for the action. Continue reading →