The big banks salivate every time The WSJ, NYT, Bloomberg… attack the payday loan industry. Few people realize that Wells Fargo, US Bank, Fifth Third Bancorp, Regions Finance and many other banks offer payday loan styled products. The real scoop is that these big banks are at the front of the line when a consumer is paid. The banks get their money FIRST! Lacking a bank account and direct deposit, a consumer cannot qualify for a “Direct Deposit Advance.”
Rich Duprey at The Motley Fool has an interesting piece: Article.
“Now, if we can just get the banks to publicize the APRs on the other fees they charge. The FDIC notes that, if you overdraw your account by $20, and the bank charges you $27 for doing so (the average these days), that’s equal to an APR of $3,520%! And that $2 fee for withdrawing $20 from the ATM works out to a 260% APR. “
And banks have been doing this for years. But, they have the money to pay off politicians, and the so called “news” agencies. The PDL industry does not have any where near that kind of money.