Looks like big banks such as JP Morgan Chase are in the running for supporting what we know as loan sharks (Or commonly known as payday loan providers. The big banks that received TARP bailout money are the primary funders of these places. Payday loan companies such as ACE Cash Express, Advance America, and Cash America are “cashing in” so to speak.
With the economy in shambles, more and more people are searching online for an emergency cash advance. While unemployment still remains at an all time high, it is no wonder that many people have no choice but to get a payday loan. Many people view payday loan companies in a negative fashion and this could in part be due to outrageous interest charges that these types of companies charge. Some loan companies have charged over 400% interest. However, on the same token, let’s say that there were not any of these loan providers around. What would people do? The big banks wouldn’t loan them money because they have bad credit. Some people say the solution is to charge much lower interest fees. That solution is completely viable and should probably be enforced.
No matter what you or I say about payday lenders, one thing is for certain.
Payday loan lenders are here to stay. At least for now.
