24
Sep

Banks, Payday Loans and Competition

  From Optirate, “Banks have the misfortune to be confronting the discounters just when marketplace and legal changes are drying up some of their traditional revenue sources, like packaging sub-prime mortgages and gouging people with overdraft fees. An economist at a bank regulatory agency (who asks for anonymity) estimates that $25 billion a year of bank-fee revenue is evaporating. That’s a lot for an industry that netted a pretax $104 billion last year.”

Hmmm… might be a partial explanation for the continuous attack on micro-lenders and the payday loan industry by banks and credit unions? Who do you think helps to fund our critics? It certainly isn’t our customers!

Read the article at Optirate in its entirety. Need for bank branches? Delivery of funds to smart devices? Lot’s of ideas to process…

Share
Comments ( 4 )
  • payday loans says:

    Well, the competition in payday loans is really tight; that’s the reason why many lender offer low interest to attract loaners. Indeed loans are important and a big help to people in urgent needs of money but the interest we pay for our loan can be great help if we saved it.

  • Finance Reporter says:

    Payday loans and other personal loans are not bad. Just use them wisely and you are not likely to get in trouble. Shutting down all these companies may not be a good idea since some people actually need it.

  • Jeffrey says:

    Jer, don’t forget the credit unions! They hate payday loan companies as well. Check out CUNA

  • Sam says:

    It seems to me that the $25 billion could be being spend on putting the Pay Day Loan Industry out of business?

Share
Share