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Payday Loan Backers, Major Banks Are Joining The Circus!
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Payday Loan Backers, Major Banks Are Joining the Circus!

It is a sad day when you can not trust your bank not to be one of the major U.S. banks who are now payday loan backers.

Seems every day you read another politician is waging a war on these companies, but yet they still keep growing to the point that now major U.S. banks are making a play for a piece of the business these companies generate.

What banks?

Here is where I need to be a bit careful and tell you readers that it is very simple to search the web and find out which major us banks are doing this. Because I take the payday loan industry very seriously and call them on their behavior daily I must be careful how I might word an article like this.

Rest assured, there are lists out there and you might be surprised to find your bank on it. If you do will you still keep doing business with them? This is where we will find out who really cares about people being taken advantage of in this country.

Why should I care?

I can hear some of the arguments now. " Why should I care? I do not use those services, and people who do get what they deserve."

Try to keep in mind these people that do use them are probably related to you and even if not the hit on our economy because of these money pits will be felt by you on a daily basis, whether you realize it or not.

What is the real point?

The real point is what is fair and what is not fair. Why should the banks you do business with expect you to be on the up and up, follow all of their rules, and pay all of their fees, fees they really are already exploiting, while at the same time these same companies are backing payday loan companies who are doing business illegally?

Many of the companies backed are not following the laws of any given state, especially the online companies.

Summary

I guess I just wanted to spout off a bit over what I feel is bad business for the average American. I know I am in the business of payday loan consolidation and I should be grateful these companies exist so I can have a job to do, but I just can not see it that way.

As long as they are out there, we will be too, and we look forward to the day they put us out of business. Remember, the only way they can do that is to stop giving payday loans, and we could live with that!

Are you going to go check your bank?

Please feel free to share this article and leave any questions and comments below!


Street Talk

Sherry B.  

Great to know Shawn! I am definitely going to check around. What about credit unions? It seems the one I go to has been changing a lot lately for the worse. I also believe I recall seeing them advertising something about a short term loan through them, which has gotten me wondering where their interests actually are. To serve the community or themselves? I'm pretty sure it's the latter.

Reply
  about 5 years ago

Some are very good yet, while others are turning to corporate rules. be careful to find one that is really run on the local level. :)

Reply
  about 5 years ago

I guess I don't really get the whole process - I thought Payday loan companies were privately owned. They're backed by banks? And are all Payday loan companies illegal? I've seen a few in the city I just moved to.

Reply
  about 5 years ago

Many are regulated or illegal, but the online ones do business anyway. They are being backed by Major U.S. banks, and the banks themselves are now offering these loans, calling them short term instead of payday loans, but they are the same thing.

Reply
  about 5 years ago

Good to know. I can see how these could get people into trouble, and why they would need help getting out of that trouble.

  
  about 5 years ago

Exactly! I just can not stand the idea of 300 to 3000 percent interest.

  
  about 5 years ago
Anna Ware  

Very good article and a scary read. I like a world where companys have a sense of moral, obligation, dignity and responsebility. Shouldn't be to much to ask since they still would make good profits. You would think they would sleep better at night :)

Reply
  about 5 years ago

You are spot on Anna!

Reply
  about 5 years ago

Without even looking, I'm pretty sure the MAJOR U.S. bank that now hosts my checking account (mentioning their name would be indiscreet...Bank of America) is on your bad-guy list. I understand the 'Remove Comment' button here is inconveniently placed, so I'm going to assume that's the reason you've deleted my remarks 14 times now. :-)

Reply
  about 5 years ago

LOL< yes Bill, that is the reason :) I have big fingers for sure :P Umm, well, ahhh, as far as your bank goes.... aahhh, ummm, welll, they could be on the list.

Reply
  about 5 years ago

Banks can borrow money at historically low rates while backing payday loans as a means to circumvent usury laws. Lower interest rates are supposed to benefit everyone and that is the justification for setting the rates so low in the first place. Banks have the best of both worlds and still, when they lose money due to mismanagement, THEY get bailed out. I say let them fail next time. If you can't survive in the market place, someone will create something that can.

Reply
  about 5 years ago

I agree. I know Wells Fargo here in my town now charges $8.00 to cash a check written on their bank, from one of their customers, to a non member of their bank. That is just greed at its finest there. Thanks for reading.

Reply
  about 5 years ago
Kymee  

Great read, WOW I can not believe would continue to bank there at Wells Fargo.

  
  about 5 years ago

Sorry Steve, one thing I really dislike about Street Articles comment section is the placement of the remove comment tab, because I am always accidentally hitting it, as I just did on your last comment, and it is now pending removal. Sorry bud.

  
  about 5 years ago

I know how that is Shawn, I don't know how many times I have almost accidentally marked someone's comment as spam.

  
  about 5 years ago

I did not know that about Wells Fargo - I never use checks, but it's good to know. Also Shawn, I have accidentally removed several of your comments over the last couple years. Sorry. LOL. It happens.

  
  about 5 years ago

I agree 110%, Steve. Only the fittest should survive. At least that's the way it's supposed to work. And banks do back the payday loan guys because they themselves can't legally charge those kind of eye-popping interest rates. Usury laws are a joke; someone is obviously being 'used' here, but it's certainly not the banks.

Reply
  about 5 years ago

So well said Bill.

  
  about 5 years ago

Spot on Steve, we should have let them all fold, we would have been in crisis for a short while but someone would have filled the void and made a better fist of things.

Reply
  about 5 years ago

Do I see a movement forming? lol

  
  about 5 years ago
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