http://banktalk.org/2011/01/24/bank-notes-7/ Exploring the Finances of the Unbanked Tue, 22 May 2012 19:08:56 +0000 hourly 1 http://wordpress.org/?v=3.3.1 http://banktalk.org/2011/01/24/bank-notes-7/comment-page-1/#comment-7815 Dale Marshall Tue, 01 Feb 2011 14:45:36 +0000 http://banktalk.org/?p=3159#comment-7815 It does not appear to be too risky..if Jackson Hewitt and Liberty Tax are giving the bank $61 for an 8-15 day loan of $1,500 (APR 100%-185%) using money borrowed at 3.92%, seems like a pretty good return on investment, even given the high number of defaults they are going to experience. It does not appear to be too risky..if Jackson Hewitt and Liberty Tax are giving the bank $61 for an 8-15 day loan of $1,500 (APR 100%-185%) using money borrowed at 3.92%, seems like a pretty good return on investment, even given the high number of defaults they are going to experience.

]]> http://banktalk.org/2011/01/24/bank-notes-7/comment-page-1/#comment-7292 John Galt Tue, 25 Jan 2011 16:13:44 +0000 http://banktalk.org/?p=3159#comment-7292 Thank you Adam, for pointing out these informative bullet points. We had no idea that there were such significant costs associated with providing a much needed service to these underserved people. All this time we were under the impression that the banking institutions involved in this space simply sat back and sucked hard earned dollars out of the system without much effort. But your bullet point analysis certainly shows that there are real costs and risks for the banks involved in the fulfillment products that are in high demand by taxpayers. I am relieved to see that regulated institutions are involved with providing these much needed financial products to the financially underserved population. Without them, the demand would still be high, but the needs would be met by those UNREGULATED entities that permeated the tax business 20 years ago. Thank you for the enlightenment. I am encouraged that the financial sector continues to reach out and provide products to people that most banks ignore. Thank you Adam, for pointing out these informative bullet points. We had no idea that there were such significant costs associated with providing a much needed service to these underserved people. All this time we were under the impression that the banking institutions involved in this space simply sat back and sucked hard earned dollars out of the system without much effort. But your bullet point analysis certainly shows that there are real costs and risks for the banks involved in the fulfillment products that are in high demand by taxpayers. I am relieved to see that regulated institutions are involved with providing these much needed financial products to the financially underserved population. Without them, the demand would still be high, but the needs would be met by those UNREGULATED entities that permeated the tax business 20 years ago.
Thank you for the enlightenment. I am encouraged that the financial sector continues to reach out and provide products to people that most banks ignore.

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