......HelloChoice





    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
    Read more....

    Hearing entitled "An Examination of the Availability of Credit for
    Consumers"
    Read more....

    Here's What A World Without Subprime Loans Looks Like  
    Read more....

    KPMG Study: "Underserved" Market Represents Growth for Banks
    Read more....

    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
    Read more..

    To Serve the Underbanked, Emulate Retailers   Read more..

    Underbanked Consumers: Not Who You Think They Are   
    Read more..

    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
    more....

    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....




AFSPA



    Breitbart: CFPB Payday Loan Hearings in Nashville Backfire for
    Obama Administration

    Alabama: Payday loan database bill dies on last day of legislative
    session

    IDAHO bills become law: Payday lending. Under this industry-backed
    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
    loans..


    For 48% of new payday loans, borrowers paid them off with either one or no renewals,
    the study found. But 22% of loans were renewed at least six times.

    Our central concern here is not with every payday loan
    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

ARTICLES

    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
    Trust

    Turns Out That Payday-Loan Customers Are Pretty Savvy Borrowers.
    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
    Tree

    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
    financial literacy.  
    World Economic Forum
STUDIES    LINKS