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Yes, the Payday Loan Can Be Reinvented

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'The Law Penalizes the Consumers It Set Out to Protect': Comments of the Week

American Banker readers share their views on the most pressing banking topics of the week. As excerpted from the Comments sections of AmericanBanker.com articles.

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Comments (4)
It is great to have this conversation through the American Banker. Consumers need access to new short-term credit products to give them more options based on their individual needs. It's going to take all of us working together, the best and brightest from both banks and non-banks, to address this challenge. We applaud innovators like Sasha Orloff and Jacob Rosenberg of LendUp and many others who are bringing new ideas and products to this marketplace. But it's tough to do without a national platform. One of the challenges to bringing these new products to market is the patchwork of state laws governing short-term lending. That's why the Online Lenders Alliance is a proponent of federal charter legislation that would establish a national regulatory framework for the industry so all consumers have access to the innovative financial products they are demanding.
Posted by OLA | Friday, February 22 2013 at 2:55PM ET
I always check out this website before getting a loan - www.dollar-plan.com - My personal favourite are trusted payday because they can always get me a loan despite my poor credit history.
Posted by lucysan | Friday, February 22 2013 at 9:22PM ET
I agree that American consumers need access to new short-term lending options with lower interest rates. Many consumers have problems with repayment of their payday loans and get into the debt circle. But I think that we can blame only those lenders who charge hidden fees and are unfair with their consumers. There are payday loan lenders who just provide fast financial assistance and honestly inform clients about the interest rate they charge. It's not worth to hurry when you pick a loan because there's a risk to make a serious financial mistake. It's a well-known fact that instant loans have high interest rates and it's not worth to use this service in case you're not sure that you'll be able to pay off the loan.
Posted by Christina8 | Tuesday, February 26 2013 at 7:36AM ET
The majority of these issues regarding APR's, cycle-of-debt, and State/Federal legislation moot. The "Virtual Wallet" is in the midst of a major disruption the payday loan industry hasn't seen since the Fed's increased reserve requirements in 2005(?)

Recall that "disruption rarely comes from within. The bones of old-school bankers, check cashers, and payday loan companies are soon lie with those of the dinosaurs.
Posted by Jer - Trihouse Consulting | Tuesday, September 10 2013 at 5:24PM ET
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