http://banktalk.org/2011/02/28/iowa-advances-payday-lending-bill/ 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/2011/02/28/iowa-advances-payday-lending-bill/comment-page-1/#comment-9681 commonsense1947 Tue, 01 Mar 2011 13:14:41 +0000 http://banktalk.org/?p=3321#comment-9681 States who essentially ban Payday lending, close one door to the access of credit and open the door for consumers to be consumed by overdraft fees of banks. If Wells changes their "Advance" program, it opens the door for them to "invite" Payday consumers back into their lair to be consumed by overdraft and other fees. "Mainstream" banking is expensive. Don't legislators and regulators see past their Populist votes and mandates? There is no free lunch. Every bank and money service business has to make money. The Consumer will always pays. If the Iowa Payday lending passes, you'll see total bank fees surge. It has happened in every other state that banned Payday lending. But a vote against Payday lending is just good headline copy. States who essentially ban Payday lending, close one door to the access of credit and open the door for consumers to be consumed by overdraft fees of banks. If Wells changes their "Advance" program, it opens the door for them to "invite" Payday consumers back into their lair to be consumed by overdraft and other fees. "Mainstream" banking is expensive.
Don't legislators and regulators see past their Populist votes and mandates?
There is no free lunch. Every bank and money service business has to make money. The Consumer will always pays. If the Iowa Payday lending passes, you'll see total bank fees surge. It has happened in every other state that banned Payday lending. But a vote against Payday lending is just good headline copy.

]]>