Regions Bank has halted payday lending in the state of North Carolina, according to the Center for Responsible Lending.
Payday loans, known for their extremely high interest rates, have been banned from North Carolina for more than a decade. However, under a federal banking law, Regions Bank was able to offer such loans, the CRL said.
After much criticism from consumer advocates and various state agencies, the bank has pulled the product.
“Especially in the wake of the bad lending that led to the financial crisis, banks should understand that the last thing we need is destructive loans that drag cash-strapped families down even further,” said Jeff Shaw of the North Carolina Justice Center in a prepared statement.