Payday Lender – Great Banking Partners or Banking Liability?
Author: Brandi B. Reynolds, CAMS-Audit
According to an article by nbcnews.com, “There are more payday lenders in the U.S. than McDonald’s or Starbucks….” As payday lenders grow in number, so do their critics. To many, the payday lending industry means over-priced and un-regulated loans; however, that is hardly the case. Often times, it is banking financial institutions (BFI) that have the biggest misconception of payday lenders, in thinking that they are predatory and take advantage of their customers. This mistaken belief can lead to banks considering payday lenders as a liability rather than a potential valued client.