Major Banks Help Shady Lenders Banned By States

Major Banks Help Shady Lenders Banned By States
LONDON, ENGLAND - JANUARY 11: A neon sign above a branch of Payday Loans, who offer cash for gold and instant cheque cashing services, is reflected in a bus window on January 11, 2011 in London, England. The Government's budget cuts are placing an increasing strain on the finances and job security of many citizens. Chancellor George Osborne is encouraging banks to reduce the size of their annual staff bonuses. (Photo by Oli Scarff/Getty Images)
LONDON, ENGLAND - JANUARY 11: A neon sign above a branch of Payday Loans, who offer cash for gold and instant cheque cashing services, is reflected in a bus window on January 11, 2011 in London, England. The Government's budget cuts are placing an increasing strain on the finances and job security of many citizens. Chancellor George Osborne is encouraging banks to reduce the size of their annual staff bonuses. (Photo by Oli Scarff/Getty Images)

Major banks have quickly become behind-the-scenes allies of Internet-based payday lenders that offer short-term loans with interest rates sometimes exceeding 500 percent.

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