Banks Ceasing Controversial Loan Programs

U.S. Bancorp and Wells Fargo say they no longer will offer a short-term loan service that federal regulators had begun to question.

Like payday loans, deposit-advance products are short-term loans that come with high fees and interest rates, Reuters reported on Jan. 17.

The change is not happening immediately, the banks indicated. U.S. Bancorp will phase out the products by May 30 for all customers, while Wells Fargo plans to discontinue the program sometime later in the year.

To learn more about the short-term loan decision, read the full story here.