Payday loan-check advance business questions.

[brain55]

Like others have stated, the danger of pay day loans losing to the state government is because of bank lobbying. Banks hate payday loans because it hurts their profit.

This goes with my first post and why the bank wanted so much on deposit. They expect to get the fees for use of their money rather than somebody tying up their cash by leaving it on deposit. My FIL was making 14% from his buddy because he had the $500k to put on deposit. It was way cheaper for his friend than the bank fees. Just a note - the bank didn't start out with wanting $500k they incrementally kept increasing it to try to make themselves money.

 

[Gale Hawkins]

It was a wake up call a couple weeks ago to learn banks effectively charge a higher rate than the the 197% interest rate allowed by KY for the check cashing places when it comes to over draft "protection". No wonder some people trap themselves financially and cannot escape very easy.

Sadly it is the 60+ age group in this mess often I am learning.

 

[dave1949]

There was a piece on the news last night saying retail banks are earning the majority of their fee income on overdraft protection and charges. That doesn't excuse others from doing the same. The end result is still sucking money out of those who least understand and can least afford it.

 

[CobyRupert]

Remember when banks made money for you instead of from you....

 

[Gale Hawkins]

Remember when banks made money for you instead of from you....

I think those days were on a one way road out of town.

 

[crazyal]

Remember when banks made money for you instead of from you....

Nope. I can remember a day when banks would only charge those who abused the system by missing payments, running up credit card debt, writing checks for more than they had in their account, etc. But thanks to our feel good laws to protect consumers banks now have to spread the costs to everyone. But then again back then personal responsibility was a good thing.

 

[Midniteoyl]

Banks have always made money from you... :confused3:

 

[Rollcenter]

Banks will still make you some money, but at a MUCH smaller percentage than in years past.

Banks priorities have ALWAYS been to be profitable for the bank owner....

 

[murphy1244]

I think he's talking about Cd rates of6% and savings account rates of 2%

 

[Midniteoyl]

I think he's talking about Cd rates of6% and savings account rates of 2%

When they were raping people in the real estate market, sure.. They had to give you a small token to make you feel good