Banking On Payday Loans: Financial Institutions Get Into Short-Term Credit Business
The Journal Record › March 07, 2011
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Summary
For years, the payday loan industry has appealed to consumers with limited financial resources who needed immediate cash. Once the territory of pawnshops and check cashing services, payday loans have become a $42 billion-per-year economic giant over the past decade.
Most of the industry's products are offered by small, storefront operations that offer short-term loans, but some of the country's largest banks are financing those operations and, in some instances, offering their own version of payday loan products.See the full content of this document
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Banking On Payday Loans: Financial Institutions Get Into Short-Term Credit Business
Oklahoma banks have yet to offer such loans, but the trend is growing nationwide. A new study from the National People's Action network and the Public Accountability Initiative, "The Predators' Creditors," shows how at least three of the country's largest banks have provided $3 billion in credit to the payday loan industry.
"Big banks provide...See the full content of this document
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