Raleigh, N.C. — Consumer advocates are declaring victory after a small, out-of-state bank dropped a controversial loan product likened to payday lending.
Regions Bank offered "Regions Ready Advance" to account holders, allowing consumers to borrow up to $500 by pledging the next direct deposit that comes into their bank account.
“The people of North Carolina and the North Carolina legislature have consistently said they do not want payday lending in our borders,” said Chris Kukla, Senior Vice President for the Center for Responsible Lending. “We’re glad that Regions Bank has decided to stop thumbing its nose at our North Carolina laws and has dropped this product in our state.”
Kukla was one of a number of consumer advocates who, along with Attorney General Roy Cooper, objected to the loan program.