After the introduction of the new financial reform which limits the operations of payday lending companies, some articles on the further development of lending industry have been published. The authors of these articles express a supposition that banks will be those institutions that will take care of the payday loan borrowers. It may happen in some spheres, but in most cases reputable banks don’t want to deal with the customers who have such unsecure credit history as payday borrowers have.
In 2009 banks declared to make overdraft and fees of “not sufficient funds” for over $38 billion. Because of enacting Regulation E in summer, the option of overdraft protection for borrowers was declined. As a result banks have to cope with big losses. A huge amount of changes that banking sector is facing can be seen today. E.g., their new clients can be provided with free of charge checking account no more. These accounts have been always offered to customers for the last 10 years, but today since the banks can’t earn any money from overdrafts, they have to make their customers pay for the every bank operation. New clients are charged monthly fees, online fees and others in order banks can cover their losses and make at least miserable profit.
Now, when the bill of financial protection has been enacted and has made a lot of payday lending companies go out from the lending industry, some experts predict that banks will address to the payday loan borrowers, the number of whom is near 20 million people. In my opinion, banks will still avoid the borrowers with a bad credit history. My view shares the editor of the lending business news website “Payday Pundit”, which is owned by the Consumer Financial Services Association of America (CFSA). Several banks tried to lend the loans similar to payday credits earlier. But they didn’t get any profit form these operations. Payday loan customers, who need a little sum of money before they receive their paychecks, won’t spend their time to go to the bank for borrowing money in their turn. The customers who are provided with the lending services at our company always give good responses and seldom complain of our operations. It means that they are fully satisfied with everything we can offer. A lot of people in the industry can confirm it. Everyone who has been working for PDL undoubtedly has felt appreciation from the customers, who addressed to our company and got the necessary service, which they could receive nowhere else.
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