Banks must need overdraft revenue
February 28, 2010 | alternatives, industry | Comments (1)From the Toledo Blade:
STANDING to lose $15 billion to $20 billion in annual revenue from overdraft fees, banks nationwide are embarking on campaigns to preserve or replace that money. One avenue is to urge customers to give the required “opt-in” approval to keep charging overdraft fees and another is to push short-term products similar to “payday” loans. In recent weeks, Chase bank, a part of JPMorgan Chase Co., has been sending letters to consumers with an offer that it urges them not to refuse.
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KUDOS to PaydayPundit!!
As if you weren’t already my TOP CHOICE for relevant PDL news, you’ve scoured so deep as to find a report from my home-town Toledo Ohio!
Now if the reporters and politicians did literally 5% of the homework this site does (let’s make it 36%!!) the “regulation” against the PDL industry would not even try to cap APR’s at 36%, and we would all have agreed upon a working model of regulation that allows working-class families the option and choice for short-term credit and PDL businesses the ability to charge enough to keep the doors open. Everyone wins!! Well, one can hope that the reporters and politicians will pick up a book, a calculator and not only learn to calculate an APR on long and short term loans (same formula, VERY different results) but also look at statistics regarding default percentages, charges associated with giving a PDL, and customer satisfaction statistics. Only then would I feel like “regulation” was an honest attempt to “protect” consumers and the economy.
Until then, let’s keep fighting the good fight!