Think Finance’s Big Move

Think Finance seems to be a step ahead.  Ever since the NY Times lambasted Chase for improprieties relating to the ACH system, the wheels have been turning.  Their next product goes straight the employer and bypasses the borrowers bank account.  This payday loan alternative is called My Salary Line.  Biz Journals writes, “Bob Johnson marketing alternative to payday lending.

This concept is not new.  When my parents bought me my first car, it was back in 1993 and my mom’s credit union required a payroll deposit for the payment, in exchange for a lower rate.  36 months later, we owned it.

In states where installment loans trump payday loans, these advances are called “paycheck” loans.  The loan comes out of the proceeds of your pay check.  Makes sense.  Think Finance has a powerful partner on their side.  Bob Johnson who founded BET is on board.  When asked about the morality of the product, he responds:

“If you can do well and do good, God bless you.  I’m trying to create business solutions to social problems.”

It seems here that the employer / lender relationship plays a big role.  Think Finance wants the employer to solicit these loans and make the argument that they’re cheaper than payday loans.  This will put Think Finance ahead of the borrowers bank, which is a huge advantage.


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