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(The Consumerist)   Faced with a reduction in fee income from overdraft fees, teller fees, and multiple fee fees, major banks turn to payday loans, which really aren't payday loans, honest   (consumerist.com) divider line 27
    More: Asinine, payday lending, overdrafts, Center for Responsible Lending, product design, Comptroller of the Currency, Fifth Third Bank, Regions Bank, Community Reinvestment Act  
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2405 clicks; posted to Business » on 12 Jan 2013 at 3:54 PM (1 year ago)   |  Favorite    |   share:  Share on Twitter share via Email Share on Facebook   more»



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2013-01-12 03:56:20 PM  
Fees, shorty. Fees.
 
2013-01-12 04:11:35 PM  
I fail to see how this isn't usury.

That being said, if you think you need a payday loan, you don't. Seriously. There are very, very few situations where it's a good idea.
 
2013-01-12 04:19:05 PM  
Just mint yourself a trillion dollar coin and deposit it.
Problem solved.
 
2013-01-12 04:22:18 PM  

cig-mkr: Just mint yourself a trillion dollar coin and deposit it.
Problem solved.


Just try to get change.
 
2013-01-12 04:25:56 PM  

Lord Dimwit: I fail to see how this isn't usury.


$ome people are more equal than others, that's how.
 
2013-01-12 04:27:15 PM  

2wolves: cig-mkr: Just mint yourself a trillion dollar coin and deposit it.
Problem solved.

Just try to get change.


I see what you did there.
You meant this kind of change.
4.bp.blogspot.com
 
2013-01-12 04:31:46 PM  
FTA:

"Thus, a group of five U.S. senators have asked regulators to put a stop to the practice altogether."

Someone didn't get their bribe political donation this month.
 
2013-01-12 05:08:49 PM  
yeah pay day loans as they exist now need to be banned along with sub prime ARMs.
 
2013-01-12 05:16:37 PM  
The problem w/ banning payday loans is that they would be replaced by loan sharking. Of course, the legitimacy of payday loans means that many more people will take these loans than would if the only option was tony the nose on the corner.

So there has to be a balance. And transparency. And education.
 
2013-01-12 05:19:02 PM  
It was only a matter of time.

Very few banksters have gone to jail for any of the shenanigans that go on in this country. They have no reason to stop until someone stops them.
 
2013-01-12 05:22:19 PM  

Heraclitus: It was only a matter of time.

Very few banksters have gone to jail for any of the shenanigans that go on in this country. They have no reason to stop until someone stops them.


Right. When you don't commit crimes, theres no reason to be out in jail.
 
2013-01-12 05:25:10 PM  

Debeo Summa Credo: Heraclitus: It was only a matter of time.

Very few banksters have gone to jail for any of the shenanigans that go on in this country. They have no reason to stop until someone stops them.

Right. When you don't commit crimes, theres no reason to be out in jail.


Yeah, creating false documents with forged signatures to produce in court are only 'slight paperwork errors', amirite?
 
2013-01-12 05:34:56 PM  

buzzcut73: Debeo Summa Credo: Heraclitus: It was only a matter of time.

Very few banksters have gone to jail for any of the shenanigans that go on in this country. They have no reason to stop until someone stops them.

Right. When you don't commit crimes, theres no reason to be out in jail.

Yeah, creating false documents with forged signatures to produce in court are only 'slight paperwork errors', amirite?


When one person does it, it's a crime. When an entire industry does it, it's an unconventional business practice.
 
2013-01-12 05:44:57 PM  

Lord Dimwit: I fail to see how this isn't usury.


This is nothing. Go check out Western Sky. They do a nice job of giving you all the information, except of course the totals involved:
$10,000 - $75 off the top in fees, $62,453.16 over 84 payments.
$5,075 - $75 off the top in fees, $40,872.72 over 84 payments.
$2,600 - $75 off the top in fees, $13,839.62 over 47 payments.
$1,500 - $500 off the top in fees, 4,756.56 over 24 payments.
$850 - $350 off the top in fees, 1,808.64 over 12 payments.

That's usury. The fun part is looking at their "fee structure", in which they deliberately feed off those borrowing small amounts. I'm appalled that this is even legal.

Yes, banks are predatory when it comes to feeding on the poor, but they've nothing on these folks, businesses whose sole purpose is to feed on the poor and trap them in a cycle of debt.
 
2013-01-12 06:10:27 PM  
Since it appears that it would be cheaper to take a cash advance on your credit card, these folks must be desperate. It makes a case for not prohibiting assault weapons.


/dear ATF: just kidding, honestly, just a sick joke. OK?
 
2013-01-12 06:43:42 PM  

FormlessOne: businesses whose sole purpose is to feed on the poor and trap them in a cycle of debt.


And since it's on an Indian reservation, the usual rules don't apply. And if you want some fun, look up Western Sky's address and then search for it on Google Maps.
 
2013-01-12 06:52:21 PM  

Glancing Blow: Since it appears that it would be cheaper to take a cash advance on your credit card, these folks must be desperate. It makes a case for not prohibiting assault weapons.


/dear ATF: just kidding, honestly, just a sick joke. OK?


The people who use these places don't have credit cards, because their credit is shiat.
 
2013-01-12 07:20:19 PM  
The credit union my ex wife works for has micro loans the have 391% APR.
 
2013-01-12 08:36:27 PM  

WhyteRaven74: FormlessOne: businesses whose sole purpose is to feed on the poor and trap them in a cycle of debt.

And since it's on an Indian reservation, the usual rules don't apply. And if you want some fun, look up Western Sky's address and then search for it on Google Maps.


Yep. Definitely an organization from which folks should stay away.
 
2013-01-12 08:42:21 PM  
There has been an influx of payday loan/cheque cashing places for at least the last 15 years around here. The problem seems to be that the major banks have shut down alot of the smaller branches and alot of the branches in less affluent neighborhoods.Most of the people in these areas will go to the closest place to get money, not the wisest place. Since the laws for these places keep getting stricter they've just renamed their services. Less "payday loans" and more lines of credit and even deposit accounts that act like a regular bank account (no cheques tho). Of course with ridiculously high fees.
 
2013-01-12 09:43:01 PM  
Hey, subby, ever heard of "automatic deposit advance"?
 
2013-01-12 09:51:44 PM  

This About That: Hey, subby, ever heard of "automatic deposit advance"?


Commenter, FTFA: To highlight the growing trend of banks offering these don't-call-them-payday loans, Senator Blumenthal uses an example similar to the Wells Fargo Direct Deposit Advance

/Subby
//Heard about it from a Udall email. Chose Consumerist for the Auto-Greenlight.
 
2013-01-12 10:56:14 PM  
I missed the part in the article about the banks forcing customers at gunpoint into taking these loans.

"Bank payday loans increase the ranks of the unbanked by making checking accounts unsafe for vulnerable consumers, a result clearly inconsistent with a safe and sound banking system...."

The way it's worded, you'd think that the payday loan is hiding around the corner, waiting patiently then jumping right into a "vulnerable" customer's account, without them even knowing it!

We urge you to take meaningful regulatory action that ensures that no bank, regardless of its prudential regulator, structures loans in a way that traps its customers in a cycle of high cost debt.

Which makes as much sense as, "We urge convenience stores to stop selling beer because some people might become alcoholics."
 
2013-01-12 11:56:38 PM  

cig-mkr: 2wolves: cig-mkr: Just mint yourself a trillion dollar coin and deposit it.
Problem solved.

Just try to get change.

I see what you did there.
You meant this kind of change.


Went for a two-fer.

It worked.
 
2013-01-13 12:48:16 AM  
Here's how you fix it.

Offer the service.

If you fark up once, you pay the fee.

If you fark up twice, you're converted to a savings account automatically and you can get a checking account again once you learn how to spend 5 whole minutes a day balancing your budget like a grown up.
 
2013-01-13 08:48:31 AM  
Christian Nation.
 
2013-01-13 10:55:25 AM  
Stopped reading after they took out the forums...you should too subtard
 
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