Posts Tagged ‘banks’
New Credit Card Law, Same old failing system
Consider a sub-prime credit card that now comes with a 59.9 percent interest rate. The lenders serving risky borrowers say high fees and interest rates are necessary because their customers are more likely to default on loans. Restrictions on what they charge could put them out of business, and leave the neediest with no options at all, they say.
The Lies About Payday Loans
Payday loans compare favorably to many of the consumer alternatives that are offered. Many government officials that are pushing for state and federal regulation of the payday loan industry would like you to think that your being taken advantage of. The truth of the matter is, the high interest rates of these two week term loans performs better than you may think.
Cash Advance Pilot Program Fails
Cash Advance Loan consumers would appear to be a mystery to the FDIC and President Obama himself. In 2008 a two-year pilot program was created by the Obama administration and the FDIC to combat the so-called predatory lending of the cash advance industry. After roughly 11 months the pilot program is showing minimal usage by the standard consumer and the cash advance industry continues to grow. Basic problem being recognized is that these consumers to not want the strings that come with these “more legitimate” loans.
Banks decline, payday lenders gain
Based on recent Census Bureau surveys, 1 in 4 American households use check cashing or payday lenders to obtain cash quickly. It shows that many consumers are turning away from banks and avoiding the lengthy process involved in obtaining funds often needed immediately.
The payday lenders business model of quick cash now is gaining ground over the more traditional loan lenders.
