Information about Payday Loan Consolidation

Payday Loans Summary

Payday lending presents insured depository institutions with significant risks. To be successful in payday lending, depository institutions must adequately identify, measure, monitor, and control the attendant risks. Depository institutions also must ensure that adequate management expertise and the appropriate level » Read the rest

Regulatory Implications

Recently, bank examinations have disclosed that a number of institutions involved in payday lending have failed to properly assess and control the risks associated with payday lending, and federal banking agencies have taken swift action to address the identified problems. » Read the rest

Risks Associated with Payday Lending

While the payday lending business presents banks with new growth opportunities, it also presents significant risks. To be sure, higher pricing on payday loans promises higher revenues and wider margins for lenders. However, there also are greater risks associated with » Read the rest

Insured Institutions and the Payday Market

Subprime lending in insured depository institutions is most commonly associated with auto, home equity, mortgage, and credit card lending. More recently, however, insured institutions have ventured into the payday lending arena.

Payday lending is not delineated in either bank » Read the rest

Who Makes Payday Loans?

At the beginning of the 1990s, payday lending was primarily the domain of smaller independent check cashing outlets and pawnshops that offered services related to check cashing. These firms specialized in making high-priced loans to borrowers with limited access to » Read the rest

Who Are the Borrowers?

Typically, payday customers have cash flow difficulties and few, if any, lower-cost borrowing alternatives. Payday customers tend to be frequent users of payday advances, often choosing either to “roll over” their credits or to obtain additional subsequent extensions of credit » Read the rest

What Are Payday Loans?

Payday loans are small-dollar, short-term, unsecured loans that borrowers promise to repay out of their next paycheck or regular income payment. Payday loans are usually priced at a fixed-dollar fee, which represents the finance charge to the borrower. Because these » Read the rest

Payday Lending

Payday lending – among the highest risk subsets of subprime lending – is characterized by small-dollar, short-term, unsecured lending to borrowers typically experiencing cash flow difficulties.

Some insured depository institutions have failed to properly assess and control the risks associated » Read the rest

Payday Loans Equal Very Costly Cash: Consumers Urged to Consider the Alternatives

“I just need enough cash to tide me over until payday.”

“GET CASH UNTIL PAYDAY! . . . $100 OR MORE . . . FAST.”

The ads are on the radio, television, the Internet, even in the mail. They » Read the rest

Payday Loan Debt Consolidation – Help to Get Rid of Your Payday Loans Debt

Are you burdened by debt? More and more of us are, in these tough economic times that we find ourselves in. Fortunately, there are steps you can take before the debt becomes overwhelming. Payday loan debt consolidation is one of

» Read the rest