More on Payday Lending

Payday lenders have a market in customers who have bank accounts but do not qualify under the bank's lending criteria for an overdraft line of credit. If this is happening in your market, the question to ask is: "Why does the customer not qualify for an overdraft line of credit when that same customer does qualify for the $29 bounced check fee?"

Copyright © 2002 Compliance Action. Originally appeared in Compliance Action, Vol. 7, No. 14, 12/02