Payday Pundit

The Motley Fool exposes how banks are reaping a windfall from Ohio payday lending ban:  
Fifth Third Bancorp
Is there a link between the availability of payday lenders in a state and the amount that banks collect on overdraft fees? I’m not sure, but CAPS member Robermac suggests there is and notes that with payday lenders on the ropes […]

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While the Payday Pundit is all for MORE choices for consumers, all the hype about the GoodMoney payday loan fails to mention one thing…the fee is $9.90 per $100 for two weeks.  THAT’S A 252% APR!  Even GoodMoney cannot be offered under a 36% APR.

CU Rolling Out Payday Lending Alternative Nationwide

By David Morrison

November 17, […]

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Wait.  What?  Credit unions can’t serve all payday lending customers if payday lenders are forced to close?  Who knew? From the Arizona Republic…

If payday lending becomes more scarce down the road, credit unions won’t be willing or able to fill the entire void.

Payday-loan customers tend to be higher-risk, lower-margin borrowers. Credit unions can’t afford […]

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A do-gooder is opening banks in Connecticut hoping to lure customers from check cashers and payday loan stores.   Okay, competition is good for consumers. 

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From the company’s news release: 
With news of the passage of Issue 5 in Ohio on Nov. 4, Check Into Cash began restructuring its loan product offerings throughout the Buckeye state to comply with the new law. On Nov. 5, the company ceased to offer payday loans and began offering a new product, micro loans, which […]

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It’s rare to see a company that doesn’t give a rat’s ass about its reputation.  Slash jobs, raise credit card rates, sell parts of the company to foreign countries. 

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This story in the Ohio’s Lancaster Eagle Gazette has us puzzled.  A bank has a payday loan “alternative.”  For $300 in credit extended, it charges $30, but calls it a 10% loan.  If this is a two-week loan, wouldn’t an apples-to-apples comparision to payday loans make it a 260% loan?
Can any smart reader of the Payday Pundit […]

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Andrewsullivan.com discusses how the developing world is banking and microfinancing by cell phone. 

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The Payday Pundit was just in a bank.   While standing in line the Pundit heard a conversation between a customer and a customer service employee at a table nearby.  The customer had $345 in overdraft charges because the bank deposited his checks in the order of highest amount first. The customer was furious.  I left the […]

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That’s the thrust of this Christian Science Monitor story on how to beat bank fees.

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