Comments on: Comparing payday loans and overdraft protection http://paydaypundit.org/2009/01/06/comparing-payday-loans-and-overdraft-protection/ News and Information About The Payday Lending Industry Tue, 15 Jun 2010 10:29:51 -0700 http://wordpress.org/?v=2.9 hourly 1 By: Payday Pundit http://paydaypundit.org/2009/01/06/comparing-payday-loans-and-overdraft-protection/comment-page-1/#comment-2805 Payday Pundit Wed, 07 Jan 2009 02:42:58 +0000 http://paydaypundit.org/?p=2223#comment-2805 So competition drives prices up? That's the first time I've ever heard anyone anywhere argue this. So competition drives prices up? That’s the first time I’ve ever heard anyone anywhere argue this.

]]> By: Arthur Ham http://paydaypundit.org/2009/01/06/comparing-payday-loans-and-overdraft-protection/comment-page-1/#comment-2804 Arthur Ham Wed, 07 Jan 2009 02:04:38 +0000 http://paydaypundit.org/?p=2223#comment-2804 Have you read the new paper by Melzer and Morgan (the FDIC guy), "Competition and Adverse Selection in Consumer Credit Markets: Payday Loans vs. Overdraft Credit"? It shows that where payday loan credit is available, banks charge more in NSF fees, more for overdraft protection, and are less likely to offer free checking. The conclusion: you guys make the problem worse, not better. Have you read the new paper by Melzer and Morgan (the FDIC guy), “Competition and Adverse Selection in Consumer Credit Markets: Payday Loans vs. Overdraft Credit”?

It shows that where payday loan credit is available, banks charge more in NSF fees, more for overdraft protection, and are less likely to offer free checking.

The conclusion: you guys make the problem worse, not better.

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