While Advance America, an online payday loan string that runs in 28 states, had been accusing regulatory officials of strong-arming banking institutions to cut ties with payday loan providers, top executives in the Spartanburg, S.C.-based business had been citing bankersвЂ™ concerns about anti-money-laundering conformity.
The e-mails had been released by the banking regulators in court filings that rebut the payday lendersвЂ™ allegations of misconduct.
Companies that provide high-cost, short-term loans to consumers have actually accused the Federal Deposit Insurance Corp. and also the workplace associated with the Comptroller associated with Currency of waging a stealth campaign вЂ” with the Department of JusticeвЂ™s process Choke aim вЂ” to shut them out from the bank system.
The payday lenders have uncovered evidence that some Obama-era regulatory officials were hostile to their industry during a four-year legal battle. Most of the payday industryвЂ™s criticism has centered on the FDIC in specific.
However in court documents which were unsealed on Friday, the FDIC pointed to anti-money-laundering conformity issues вЂ” in place of any vendettas that are personal to spell out why specific payday loan providers destroyed several of their bank records.
вЂњThere is not any FDIC вЂcampaignвЂ™ against payday lenders,вЂќ the agency had written in a court filing that is 56-page.