Alabama-Regions to Lower Cost of Payday Loans
“Ah… the capitalistic system is working nicely. We see consumer rates coming down for payday type small dollar loans. We witness the entry of sovereign tribes as direct lenders adding increased competition to the B&C’s. We hear about offshore lenders lacking access to the U.S. consumer financial data. APR’s on these payday loan products are falling as demand is increasing (Refer to DFG Global Latest financial reporting).
Pennsylvania may very soon reestablish the payday loan product. Other states will certainly follow. They don’t want their constituents financial data residing in Panama or Costa Rica.
Regulators are coming full circle and returning to embrace the payday loan product when full disclosure of all rates and fees are implemented.
And finally, it’s “all about the money, stupid.” Last year 14,000,000 U.s.residences got a payday loan. Generally speaking these consumers wanted to borrow a few hundred bucks fast with little hassles. As jobs pickup, more consumers will qualify for and receive these microloans.
Where will they spend this money? On things that create jobs, taxes, services, housing, education… Read American Banker Article Here