Tribe Payday Loan Business – CNBC Report Wrongheaded

'day in the life: lunch money' photo (c) 2004, marya - license: http://creativecommons.org/licenses/by/2.0/“A little known loophole is letting some payday loan companies dodge state laws and charge interest rates much higher than the states would otherwise allow, a CNBC investigation has found.”

Your CNBC team must have been under a rock the past 10+ years. Payday loans have been offered via the tribe “sovereign nation model” for at least that long.

Much like the gaming industry, the payday loan tribe model has evolved into a highly sophisticated, profitable business enterprise. The “rent-a-tribe” characterization is a thing of the past.

Regarding usury rates, if the so-called consumer activists bothered to familiarize themselves with a payday loan product that 14,000,000 Americans elected to “use” last year, they would immediately recognize that payday loan companies do a much better job regarding fully disclosing all rates and fees than banks and credit unions do. Wells Fargo charges $10 per $100 loaned and debits their PDL customer the moment their customer’s paycheck is electronically deposited in their WF checking account; zero disclosure of a 400% APR and ZERO risk!

Here’s a link to the full CNBC article, “How Some Payday Lenders Charge”

Comments ( 2 )
  • Suki says:

    We tribe members were put on worthless land in the middle of the desert. Thanks to the Internet we’ve built schools and health clinics, opened rehab centers, created jobs…

    Ecommerce has changed the game! Let competition determine the winners; ultimately it will be consumers. Rates and fees will decrease as payday loan consumers gain more choices for solving their small dollar loan emergencies.

  • francine W says:

    I’ve invested in licensing and compliance in 3 states. Why should I go to this expense and not a payday loan lending tribe?

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