The Conference of State Bank Supervisors recently said that some state banking regulators have become concerned that Operation Choke Point has undermined compliant payday lenders’ relationships with banks. The regulators say banks are terminating relationships with licensed lenders over concerns about the expanding federal crackdown.

The Conference of State Bank Supervisors did not indicate how many of the 36 states in which payday lending is legal have expressed this concern, and some states where payday lending is illegal have come out in favor of Operation Choke Point.

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