CUSTOMER BANKERS ASSOCIATION

BEFORE THE UNITED STATES OF AMERICA SENATE SPECIAL COMMITTEE ON AGING

“PAYDAY LOANS: SHORT-TERM SOLUTION OR LONG-TERM PROBLEM?”

Chairman Nelson, Ranking Member Collins and people in the Committee, many thanks for the chance to talk about the liquidity that is short-term of American customers and bank deposit advance services and products. I am Richard search and I also have always been President and CEO for the Consumer

Bankers Association (“CBA”). 1

Presently, an approximated 76% of all of the Americans reside paycheck to paycheck. 2 The economy has remained stagnant making customers with less pillow for emergencies, strained credit scores, and less credit choices, making use of fairly priced short-term liquidity services and products all that more important. Read more ›

McCall ended up being residing on social help after health conditions forced him to go out of their task. A quick payday loan for some hundred bucks appeared like a good notion. But exactly what wasn’t explained to him had been that interest on their loan had been determined biweekly, so he had been spending about 500 per cent interest, maybe maybe not 20 per cent as advertised. 8 weeks later, he took away another cash advance, and dug himself an even much much deeper gap. Read more ›