Sky's the limit for bank fees

Banks bailed out with U.S. taxpayer money, like Wells Fargo and U.S. Bancorp, are raking in money by charging 150 percent interest and more on short-term, payday loans to people with no savings, consumer advocates say. "I think this is outrageous. These banks got billions in bailout funds and now it's business as usual," Jim Campen, executive director of Americans for Fairness in Lending, told IPS. Once the sole domain of freestanding, paycheck-cashing storefronts, payday loans are proven to send borrowers deeper into debt, while making massive profits for the lender, according to the National Consumer Law Center. The Federal Deposit Insurance Corporation changed a rule in 2005 to allow banks to enter the lucrative market of payday lending. In 2008, the FDIC issued guidelines for bank payday loans, with a suggested cap of 36 percent interest. Wells Fargo, U.S. Bancorp and other banks have chosen not to follow the voluntary guidelines and instead are charging triple-digit interest on payday loans to cash-strapped customers, according to consumer organizations.