The NAACP released the following statement in response to news that Wells Fargo, Fifth Third, US Bank, and Regions Bank will end their deposit advance loan programs.
From Dedrick Muhammad, NAACP Sr. Director of the Economic Department and Executive Director of the Financial Freedom Center:
"The NAACP applauds the decisions of Wells Fargo, US Bank, Fifth Third and Regions to discontinue their deposit advance loan programs. These high-cost products are counterproductive for a banking industry invested in helping clients accumulate wealth. The NAACP has long fought against the corrosive effect of high-cost lending in our communities, particularly pay day lending, and we are thrilled that these banks have decided to place corporate responsibility ahead of short term profits. These banks have taken an important step towards responsibly serving the banking needs of their customers by helping them avoid unsustainable debt and the crippling effect of losing access to the banking system.
It is our sincere hope that other institutions which still offer these high-cost options for their customers will use the leadership of these four banks to reconsider their product offerings."