Not part of the problem
June 25, 2010 | Alabama, industry, positive media coverage | Comments (0)CFSA’s Tommy Moore responds to a recent anti-payday lending piece in the Montgomery Advertiser:
While the 36 percent APR sounds reasonable, at such a rate the total fee charged on a $100 two-week advance would be $1.38. Payday lenders would not be able to cover the cost of originating a loan, let alone meeting employee payroll and benefits.
A proof point of this is that Goodwill, a non-profit, tax-exempt charity, is charging customers $9.90 per $100 borrowed (252 percent APR) for their “Good Money” payday loans. And this is only to break even.
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