Comment of the Day
July 23, 2010 | Uncategorized | Comments (1)I don’t think EVERY banker, or big bank employee is literally rubbing their hands together whilst plotting and scheming against the PDL industry… BUT, big banks have lobbied against us in the past, and are happy to spread negative propaganda about our “outrageous” APR’s of “over 400%” ($17 to borrow $100 when you have BAD CREDIT seems pretty good to me, especially with operating costs and licensing!) and then turn around and offer THE SAME PRODUCT with a different name, sometimes in states (such as Ohio) that have banned/regulated payday lending out of existence!! YOU may not personally be “plotting” but banks have proven to be very protective and territorial over their $38 Billion in NSF fees in ‘09, and I’m certain they will do ANYTHING in their power to keep profits high at their customer’s expense. No one is “plotting”, they’re simply lobbying to eliminate competitors as always.
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You are So Correct in stating that banks want payday lenders out of business so they can collect even more NSF fees. Some banks refuse to accept a depositor’s check for a check advance,i.e. such as AmSouth headquartered in Alabama but operating in several states. Banks wait for customers to get their paycheck direct deposited and wipe out their account by collecting the bank’s NSF fees. I have had customers tell me their entire paycheck was wiped out by their bank. They don’t need to make loans when they can collect an NSF fee PER transaction. Naturally, each NSF fee lessens their client’s funds’ availability. Cash deposits are not posted immediatley thus allowing more fees.