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BankPlus Takes on Mississippi Payday Lenders

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Comments (3)
It is not clear why the large banks like BMO, Wells Fargo and Bank of America loan to the installment and payday lenders rather than starting programs like this.

Is it laziness or stupidity for the big banks to provide the ammo for the bottom feeders when they can start great programs like this.
Posted by Brad Golding | Wednesday, December 26 2012 at 5:09PM ET
This was a very interesting statement by the bank's CEO:

"the program lost money the first few years but is profitable now, especially with all the new business it has brought in from these previously underbanked customers."

... Meaning unless you are a bank that can steer its borrowers into ancillary products like checking/savings accounts, you will lose money making small dollar loans with "favorable terms." Payday lending is simply expensive, not exploitative, and so the terms have to be steep if a borrower defaults.
Posted by Antonia | Thursday, December 27 2012 at 8:25PM ET
Payday lenders charge a lot, this is so true. But why people keep on suing this service if it is unaffordable and they are also too difficult to pay off on a set date. I don't now how good this program is, personally I have never tried it. And I have to agree with the previous two comment, since there is something wrong here. Such a big banks and starting this program, since we should not forget that payday loans offer really small amounts. Thank you for the post
Posted by DenisD | Friday, January 04 2013 at 5:35AM ET
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