FDIC Should Downgrade Three Banks Engaged in Predatory “Rent-a-Bank” Lending
Utah’s Capital Community and First Electronic Banks and Kentucky’s Republic Bank & Trust accused of predatory lending, evasions of state interest rate limits WASHINGTON, D.C. – A coalition of consumer advocates is urging the Federal Deposit Insurance Corporation (FDIC) to downgrade the Community Reinvestment Act (CRA) rating of three banks. Utah’s Capital Community Bank (CC Bank) and First Electronic Bank, along with Kentucky’s Republic Bank & Trust, use “rent-a-bank” schemes to help third-party, non-bank lenders evade state rate caps on loans with up to 225% annual interest rates, failing to