Who’s watching your bounced checks?

According to Bankrate.com, the answer is ChexSystems, a company which holds your bounced check information for five years, providing data to other banks and lenders who asses whether you’re potentially a ”valued customer or a liability.”  Eighty percent of financial instituations use this service.
Of course, avoiding bounced checks is the number one reason consumers take out payday loans.
 
 

“Public need more, not less options”

So says Tim Miller of Center for Consumer Freedom in today’s Baxter Bulletin out of Arkansas.  Money quote:
“Borrowers are best served when they have more choices to pick from, not when politicians eliminate what is for many their only option.”   
The Payday Pundit has been making this point over and over.  Payday loans are an [...]

“We didn’t make any money on it” says Credit Union

Can you guess what the IT is?  Their short-term payday loan “alternative” of course.   The Herald Newspaper of South Carolina discusses the Family Trust Federal Credit Union’s experience with short-term loans briefly in this story.

$117 Pizza?

The Payday Pundit likes pizza as much as the next blogger, but not enough to pay $117.   This CNN story is about how overdraft fees on a pizza purchase had a multiplying affect on one couple’s finances.  It also gives some good advice on avoiding a whole slew of expensive fees.  From the article:
Fees aren’t just a cost of [...]

Skepticism about FDIC’s small loan program

This story from the American Banker (subscription required) underscores the challenges that banks face making a profit from small, short-term loans.   A few interesting quotes:
Some bankers participating in the pilot program say it is possible to make money in this line, while others say they are concerned less about making an immediate profit than about [...]

Citizens Can Make Their Own Financial Choices

That’s the thrust of the terrific op-ed “I’ll pay you Tuesday for payday loan today” in the South Carolina Times and Demcrat by Michael Hough of the American Legislative Exchange Council.  In criticizing legislative attempts to ban payday lending, he argues than payday lending is often a better choice that alternatives.  Money quote:
 
“Many times payday [...]

Credit Union official tells truth about small loan program

In the interesting article in the Milwaukee Sentinel, Eric Richard of the Credit Union National Association, argues against regulating credit unions like banks.  One of the reasons?
Richard said credit unions sometimes will provide services to members even if they know they won’t necessarily make money. Fast-cash loans as an alternative to payday lenders is one [...]

CFSA’s Tommy Moore responds to payday lending articles

The Community Financial Services Association, the association of responsible payday lenders, leads the industry fight for sensible reforms. Tommy Moore, CFSA’s executive vice president, works to educate the public on the truth about payday lending and short-term credit.  Here are two of his recent responses to media stories, the first from South Dakota’s Argus Leader and the other [...]

Look for Increases in Bank Fees

Bank fees are on the rise and don’t expect them to go down anytime soon according to the Chattanooga Times Free Press.
The Federal Reserve Bank’s recent interest rate cuts may have provided some relief for consumers, but banks have been left looking for other streams of revenue to compensate.
For many banks, that additional revenue comes [...]

The average American family pays $1200 in credit card interest each year

That and other amazing facts about credit card use can be found here.