UC Study: Credit Union Alternatives Cost the Same as Payday
Demographics of Internet Lending Customers
Benefits of Payday Loans Outlined in Yale Study
Slow Recovering Economy Sends People to Rely on Payday Loans
New Credit Card Reform Opens the Need for More Payday Loans
#1 Mistake Most Payday Loan Companies Make
READ HERE to understand any repercussions to our industry from
the new Bureau of Consumer Financial Protection.
A few quotes from Hilary B. Miller:
"the Act doesn’t contain any substantive regulation of payday
lending in any of its 848 single-spaced pages"
"At least as far as the BCFP is concerned, with apologies to Mark
Twain, the rumors of the death of the payday loan have been
"Continued diligence by trade associations, lobbyists and grass-
roots organizations will be required."
Give your support where it can help YOUR INDUSTRY and YOU!
State legislators in New York are considering a bill
that will allow check-cashing stores to make small loans,
providing a new route to quick, short-term
credit for hundreds of thousands of New Yorkers.
Knowing the size of the unbanked and underbanked population in
your community is helpful in understanding the needs of your local
market with this helpful interactive tool: Read more....
The Pew Charitable Trust has released an interesting map on the
"unbanked" Read more....
A new report from the Center for Financial Services Innovation and
Core Innovation Capital asserts that consumers with minimal
relationship with financial institutions nonetheless generated roughly
$45 billion in fee and interest income in 2010. Read more....
A closer look at America's Underbanked by BBV Read more....
Moebs Study Urges CUs to Go Toe-to-Toe With Payday Lenders
Hearing entitled "An Examination of the Availability of Credit for
Here's What A World Without Subprime Loans Looks Like
KPMG Study: "Underserved" Market Represents Growth for Banks
CFSI Announces Results from the inaugural "Underbanked Industry
Scan" Read more....
Study: For some a prepaid card can be better deal than a checking
account Read more....
The Federal Reserve Bank has issued a report by a senior
economist supporting some of the payday loan industry's long-
standing contentions that short-term, high-interest loans bring
benefits to low-income populations. Read more....
A Portrait of Older Underbanked and Unbanked Consumers:
Findings from a National Survey Read more..
Fed economist Kelly D. Edmiston states in a NEW REPORT;
“In states that ban or restrict payday loans, consumers are
harmed” Read more....
Read the report "The Truth About the Underbanked"
American Banker Magazine Read more..
The University of Virginia Darden School of Business and Tayloe
Murphy Center released the findings of a major study yesterday that
outlines specific steps for how banks and credit unions can capture
billions of dollars in deposits by reaching out to Latino and other
“unbanked” households across the United States.
Lost in Translation Study: New Underbanked Stats for Prepaid
To Serve the Underbanked, Emulate Retailers Read more..
Underbanked Consumers: Not Who You Think They Are
Low-income families use costly check-cashing and loan services not
because they lack access to banks, but because they lack
knowledge of banking options and their advantages, according to a
study by the University of Massachusetts Dartmouth Read
According to Mississippi Department of Banking and Consumer
Finance commissioner John Allison.
“In a depressed area, there are no more payday lenders than in an
area that is economically viable,” he said. Read more....
The “underserved” market is considered one of the fastest
growing segments in the United States and represents significant
potential for banks willing to develop new products and services —
with the appropriate risk safeguards — and channels to distribute
them, according to a recent study from KPMG LLP, the U.S. audit, tax
and advisory firm. Read more....
"How Should We Serve the Short-Term Credit Needs of Low-Income Consumers?"
Presented at the Harvard Joint Center on Housing Symposium
"Who doesn't use banks", all details in one INTERACTIVE map!
Fees and the Unbanked
How Your State Compares with the Nation
2010 Underbanked Market Size
FDIC study: 25.6% of ALL US households are
unbanked or underbanked.
Not Unbanked: Untapped. Underserved Spend $45B On Financial Services
This first edition of the CFPB Supervision and Examination Manual is a guide to how the
CFPB will supervise and examine consumer financial service providers under its
jurisdiction for compliance with Federal consumer financial law
Moebs Study Urges CUs to Go Toe-to-Toe With Payday Lenders
Hearing entitled "An Examination of the Availability of Credit for Consumers"
The Federal Reserve Bank has issued a report by a senior economist supporting
some of the payday loan industry's long-standing contentions that short-term, high-
interest loans bring benefits to low-income populations.
A Portrait of Older Underbanked and Unbanked Consumers: Findings from a National
The University of Virginia Darden School of Business and Tayloe Murphy Center
released the findings of a major study yesterday that outlines specific steps for how
banks and credit unions can capture billions of dollars in deposits by reaching out to
Latino and other “unbanked” households across the United States. The Opportunity in
Financial Services for Latinos
Fed economist Kelly D. Edmiston states in a NEW REPORT;
“In states that ban or restrict payday loans, consumers are harmed”
Low-income families use costly check-cashing and loan services not because they
lack access to banks, but because they lack knowledge of banking options and their
advantages, according to a study by the University of Massachusetts Dartmouth
What is It, and How Can It Be Created?
American Banker: Banks Can Make Small-Dollar Credit Products
Kiosk Marketplace: Kiosks offer recurring revenue opportunities
Who Borrows, Where They Borrow, and Why Payday Lending in
payday loan businesses if some legislators have their way.
Moneytree asks Washington state legislators for new payday-
The Mississippi House has voted to let payday lending businesses
operating in the state beyond 2015
FiSCA Criticizes U.S. Treasury For Needlessly Scaring Seniors,
Vulnerable Populations Into Electronic Forms Of Government
Startupland’s Next World-Changing Idea: Monetizing the Poor
How To Solve The PayDay Loan Problem: Competition Of Course
Helping The ‘Unbanked’ Get Affordable Financial Services
FiSCA Urges FDIC’s Committee on Economic Inclusion To Create
Partnerships Between Banks and Financial Service Centers (FSC)
To Better Serve Unbanked Americans
Spring Bank set to open in Harlem with a mission to serve
underbanked New Yorkers
Breitbart: CFPB Payday Loan Hearings in Nashville Backfire for
law, payday loans are now capped at 25 percent of the borrower's
gross monthly income.
CFPB: “Consumer Response” annual report
March 26th Senate Banking Committee Hearing:
"Are Alternative Financial Products Serving Consumers?"
At a CFPB field hearing held 3/25/2014 in Nashville, CFPB Director
Richard Cordray hinted that new rule proposals for the payday
lending market are needed.
“As we look ahead to our next steps, I will frankly say that we are now in the late stages
of our considerations about how we can formulate new rules to bring needed reforms to
this market,” said Cordray in prepared remarks. “We continue to grapple with all aspects
of these issues. We have always acknowledged that the American consumer has
shown a clear and steady demand for small-dollar credit products, which can be helpful
for the consumers who use them on an occasional basis and can manage to repay
them without becoming mired in a prolonged and costly struggle. So we intend to make
sure that consumers who can afford to take out small-dollar loans can get the credit they
need without jeopardizing or undermining their financial futures.”
The industry was represented on the panel by Jamie Fulmer of Advance America and D.
Lynn DeVault of Check into Cash; they did an excellent job representing the industry,
presenting the facts AND the future, as well as dispelling many myths about payday
12 million payday loans made over one year. It found that the market
was divided among users who paid off
loans quickly and those who renewed several times.
the study found. But 22% of loans were renewed at least six times.
made to a consumer,” Mr. Cordray said. “Some such loans should be available. Our
concern instead is that all too often those loans lead to a perpetuating sequence.”
The CFPB is currently deliberating how to structure regulations for the payday loan
industry and will likely unveil
a proposal later this year.
The industry and regulators are trying to determine how the regulator’s actions could
impact industry that made around $46 billion in loans last year.
Jaret Seiberg, an analyst with Guggenheim Partners, said in
a note to clients the agency is likely to limit some consumers’ ability to roll over loans
into new ones. The agency may allow borrowers to convert payday loans into longer-
term loans, known as “installment loans,” Mr. Seiberg said.
Survey says: Payday loan users savvier than you think
Pew Report releases study on payday lenders. The study found that online Internet
loans are more expensive than those offered through storefronts; that many online
borrowers report being threatened by lenders or debt collectors; and that the vast
majority of payday borrower complaints are about online loans. Pew calls on federal
regulators to address these problems by establishing strong, clear, and consistent
consumer protections for the small-dollar lending market as a whole. PEW Charitable
An analysis of the complaints received by the CFPB from consumers in its first three
years indicates that payday lending isn't really that big a problem insofar as only roughly
one percent of the consumer complaints are related to payday loans. Mainstream
financial products and services such as mortgages and credit cards dwarfed payday
lending for the volume of complaints received. PYMTS.com
Payday Loans and Check-Cashers Charge Exorbitant Fees and Consumers Don't
Care. Consumers are missing an easy opportunity to save money: Avoiding high-fee
loans and check-cashing services. And some don't even know why, a survey says.
Despite T.D. Bank's Checking Experience Index showing that most banking consumers
rate their checking account experience as either "excellent" or "very good," a growing
number of consumers - 22% - are using alternative banking products such as check-
cashing services and payday loans. The Street
Debt-averse millennials steer clear of credit cards. Millennials are less likely to own a
credit card than any other age group. According to a new Bankrate.com study, 63
percent of individuals aged 18-29 don't own a credit card. This holds true for 35 percent
of adults 30 and over, nearly half the number of the younger generation. Jeanine
Skowronski, a credit card analyst with Bankrate.com, says millennials are debt averse
because they grew up witnessing the Great Recession and have already faced
struggles with student loan debt and a struggling job market. CNBC
LendingTree Releases Auto Loan Data to Illustrate the Impact of Credit Scores on
Loan Offers. LendingTree, the nation's leading online loan marketplace, has released a
year-long study tracking average auto loan rates on new vehicle purchases. By
analyzing over 20,000 loan offers made by lenders on LendingTree's auto loan
exchange to borrowers across the credit spectrum, LendingTree found that credit scores
have the greatest impact on interest rates offered to prospective borrowers. Lending
Wal-Mart's Getting Into Banking, And It Makes A Lot Of Sense. Wal-Mart announced
last week that it will partner with Green Dot, an issuer of prepaid debit cards, to offer low-
fee checking accounts to customers in all Wal-Mart stores. The service, GoBank, will
offer checking accounts with no minimum balance and no overdraft fees. The monthly
service will cost $8.95, but that fee is waived with at least $500 per month in directly
deposited funds. Wal-Mart's move into banking may seem odd, but if the behemoth is
looking to serve its customers, bank accounts are a natural product. There are more Wal-
Mart stores in areas where a higher percentage of the population is unbanked - that is,
without a checking or saving account. FiveThirtyEight
5 Ways Angry Customers Have Gotten Back at Big Banks. Few institutions have
managed to inspire as much vitriol among their customers and general public as banks.
With the past financial crisis and subsequent recession, it seems that consumer's
disdain for the entire banking system has only become more concentrated. Of course,
the big banks have brought it upon themselves in many ways.
Wall Street Cheat Sheet
Republican Senators Demand Answers on DOJ's "Operation Choke Point". Operation
must not become end-run around Second Amendment rights. Republican Senators on
the Senate Banking Committee sent a letter to the Department of Justice (DOJ)
demanding answers regarding a DOJ-led effort that is negatively impacting law-abiding
and legitimate businesses by choking them off from the banking sector, known as
Operation Choke Point. Mike Crapo, US Senate
Why do so many Americans lack bank accounts? Many households in the US do not
hold a bank account, making it harder for them to accumulate savings, and the
alternative financial services which they largely use tend to charge very high fees. There
is an urgent need to identify the drivers of the unbanked phenomenon. One of the main
questions is whether being unbanked is driven by supply- or demand-side factors. The
'demand-side' view attributes the unbanked phenomenon to cultural determinants - the
poor may distrust financial institutions or may not have culture of saving - or to a lack of
World Economic Forum