Banks will drive us out of business?
July 22, 2010 | Financial Reform Bill - CFPB, customers, federal legislation, industry, regulation | Comments (2)Matt Fellowes at The Huffington Post has prematurely starting playing taps for the payday lending industry. I think several of his premises miss the mark by a mile, including this one:
Just as important, bank shareholders will demand that banks start competing with their newly hobbled fringe counterparts for those 20 million households.
Banks that are scared to death of customers without perfect credit scores are going to look to our customers for new revenues? Well, let them try. We welcome competition.
Comments»
Good point. I want to see the greedy bank CEOs wanting to lend out their money to middle class or lower class Americans instead of taking vacation to Myrtle Beach Golf Vacations..not gonna happen.
The payday lenders we work with are not that profitable most of their profits that they make off those “high-cost” loans goes to their overhead, their employees, and the leads. So one store or one website is not profitable enough so that is why they keep opinion more stores (creating more jobs) in order to make a little profit.
One of payday lenders I work with, its CEO continues pouring money, out of his own pocket, into his business. I want to see banks and their greedy executives do that. They won’t because they can’t. So to the banks, bring it on!
I work for a bank that is a member company of an international house-hold name. I can assure you that we are not plotting to put payday lenders out of business. We have our hands full enough trying to manage our mortgage and commerical portfolios and businesses during these very challenging times.