New York Times Gets to Chase’s Jamie Dimon

The New York Times is causing a lot of damage to the online lending industry. First up is Chase: “Dimon Pledges to Change JPMorgan’s Practices on Payday Loans.”

I think the online lending industry might have just screwed itself.  It was in the form of a completely unnecessary risk.  Six lenders ach’ed a dead account, received nothing in return, and got the attention of the CEO of Chase.  We don’t have a fact checker, but if we take what the New York Times says at face value,   Here is the situation:

Ivy Brodsky, one customer in Brooklyn, was charged $1,523 in fees by Chase, after six Internet payday lenders tried to take money from her account 55 times in a single month.

You would think there is enough online data to prevent this person from getting a 5th and 6th loan.  I’m not suggesting a loan limit here, but we’re screwing each other.  If you divide the ACH’s equally, hypothetically, that’s 9 ACH’s per lender in a single month.

It would be catastrophic to lose the ACH privilege   That’s all I’m saying.