Credit loans and payday lenders
differ in other ways that seem subtler but may matter just as much to consumers.
One active debate in that controversy is about whether prevailing rates/fees charged by payday lenders
are "too high." (1) Payday lenders
argue that rates/fees for payday loans do not yield economic profit once one accounts for the full economic costs of being in the business.
are about to come under the microscope.
While some 14 other states have banned payday lenders
(also called "short-term lenders" or "deposit lenders"), the industry has found fertile soil in Utah with more than 500 payday lenders
Earlier this year, the justices ruled that the surety bonds that the Check Cashers Act required the payday lenders
to post were available to pay court-ordered damages to victims.
"My office will continue to take aggressive action to stop payday lenders
from victimizing New York consumers."
In the absence of payday lenders
, some borrowers would be forced to deal with illegal lenders that provide no consumer protection.
One hundred years ago, the leading critic of "salary loan lending" called such people "sharks, leeches and remorseless extortioners." Today's consumer advocates call payday lenders
"predatory" and "legal loan sharks."
BANKING AND CREDIT NEWS-September 11, 2018--US Bank launches product to compete with payday lenders
M2 EQUITYBITES-September 11, 2018--US Bank launches product to compete with payday lenders
Global Banking News-September 11, 2018--US Bank launches product to compete with payday lenders