Banks Getting Into the Payday Lending Game

Here’s a link to a good article that explains new opportunities that banks may take to keep profits up, as well as what some banked consumers are migrating to– credit unions.

We researched parity bank payday loan products against MSB products and found that they had similar qualities but because of the checking account almost always required, the loan is paid off in the next pay period, off the top. Careful budgeting is required by the person getting the loan to avoid cascading charges of NSFs on checking activity. They were marketed as a last-resort emergency type loan.

Now seeing the article stating that Regions Banks is offering this type of loaning too, we suspect that more will follow.

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