Answer: An Op Ed piece in the Wall Street Journal titled "Beyond Payday Lenders". See, the article was co-authored by California Gov. Arnold Schwarzenegger and former President Clinton (hence the "bodybuilding" and "cigar" references).
But what do Arnold and Bill know about payday lending?
Well, they know enough to lash out at the payday industry, pawnbrokers, and check-cashing outfits for their high fees and for what they consider predatory practices amongst the poor, unbanked, and financially illiterate.
It's easy to pick on the industry. Payday loans are clearly more expensive than regular bank loans, and the folks criticizing payday loans are in an income group where they actually have the option of being approved for bank loans.
Arnold and Bill's solution? Use Government pressure to convince (force?) banks and financial institutions into offering so-called starter accounts and low cost loans.
Maybe Bill and Arnold haven't paid attention to the industry over the last 10-20 years. Banks and credit unions LOSE MONEY when they try to service this demographic. Issuing and servicing low dollar loans is complicated and expensive. There have been countless announcements over the last few years of credit unions or banks offering alternatives to payday loans … but they quietly disappear (presumably after the bankers realize they can't make a go at it).
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