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 […]
Entries Tagged as 'alternatives'
No Fool!
November 19th, 2008 · No Comments
Tags: Motley Fool · Ohio · alternatives · industry · media coverage · states
CU Rolling Out Payday Lending Alternative Nationwide
November 18th, 2008 · No Comments
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, […]
Tags: alternatives · industry
Credit unions not “willing or able to fill the entire void.”
November 18th, 2008 · No Comments
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 […]
Tags: alternatives · industry
Bring it on
November 18th, 2008 · 1 Comment
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.
Tags: alternatives · industry
Check into Cash tries “micro loans” in Ohio
November 18th, 2008 · No Comments
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 […]
Tags: Ohio · alternatives · industry
Citigroup raising card rates
November 18th, 2008 · No Comments
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.
Tags: alternatives
Bank calculates percentage rate differently
November 18th, 2008 · No Comments
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 […]
Tags: Ohio · alternatives · industry · media coverage · states
As Spock used to say, “fascinating”
November 17th, 2008 · No Comments
Andrewsullivan.com discusses how the developing world is banking and microfinancing by cell phone.
Tags: alternatives · industry · personal finance
“But, it’s your fault.”
November 17th, 2008 · 1 Comment
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 […]
Tags: alternatives
All bank fees are avoidable
November 17th, 2008 · No Comments
That’s the thrust of this Christian Science Monitor story on how to beat bank fees.
Tags: Christian Science Monitor · alternatives · industry · personal finance