Payday Loans Profit With Lower Overhead
What's a government small dollar loan worth? Nothing more than eagle food, apparently… (Photo: wikipedia.org)
The payday loan industry continues to fulfill the needs of consumers, particularly during the tight times of the recession. On volume, payday lenders are able to make profits that allow them to continue to operate in the majority of states. Thus, the relationship between consumers and payday loan businesses is mutually beneficial.
Now the Government in On the Deal
Did you know the FDIC recently rolled out a Small-Dollar Loan Pilot Program? They’re currently in the middle of a two-year run where they’re studying how traditional banks can offer payday loans at a profit. They’re doing this ostensibly to create an alternative to what payday loan companies offer – and as an alternative to overdraft protection, they claim – but it doesn’t appear they have a strong concept of the difference between black and red ink. … click here to read the rest of the! article titled “Payday Loans Beat FDIC Small-Dollar Loans Hands Down“
1 comment:
One of the reason maybe convenience. Payments in payday loans are usually handled online. By default most cash advance companies will debit your finance charges from your checking account each due date. However, you can also arrange to have part or all of your loan’s principal paid. You don’t have to worry about mailing in loan payments since it is processed electronically.
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