We attended the CFSA meeting in Las Vegas this past year. One of the initiatives was the ability to put together statistical reports that support the availability of payday loans.
I found this article because I subsribed to the PaydayLoanIndustry.com newsletter.
Donald Rieck just put out an article, “Predatory Reporting? On Payday Lending“. It’s basically saying that in states where payday lending was eliminated, over draft fees have shot up and filled the income gap left by payday lending. Someone is still making money out there at triple digit APRs and consumers have less choices now.
In a report issued by Moebs Services, they estimate overdraft protection fees can account for up to 60% of net operating income for a credit union.
I think the point is that if you’re going to allow over draft fees, why not give the consumer a choice to get a cash advance from a payday lender if they choose. The reality is that overdraft fees are forced on the consumer and a payday loan is a choice. Let’s be adults about this.
