The Soapbox

Joined: 01/04/2001 Posts: 27018
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Payday lending is designed for high risk borrowers though.

The idea is that you are not exposed to the credit quality of the borrower. You're exposed to the credit quality of the entity paying the salary - you just have to verify employment. Don't payday lenders collect the paycheck they lent against directly?

And because that is the one and only activity, I don't believe the infrastructure is nearly as daunting.

I'm no expert in that business (I think my only expertise might be in bad 1970s television, but I've missed my chance to capitalize on that), but I think the dollars and cents might work. Still need to do some diligence on borrowers, I think, but less than a full credit check.

Whether or not we want the govt in that business - that's another question even if the numbers can be made to work.

(In response to this post by Stimp)

Posted: 04/25/2018 at 2:20PM

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Okay, that is a solid point ** -- WahooMatt05 04/25/2018 2:11PM

Bad business model -- Stimp 04/25/2018 1:42PM

Payday lending is designed for high risk borrowers though. -- hoolstoptheheels 04/25/2018 2:20PM

If there was any money to be made at all charging a lower rate and fees, le -- RML Hoos 04/25/2018 2:42PM

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Yeah, I'm sure that's true. ** -- hoolstoptheheels 04/25/2018 2:48PM

No -- Stimp 04/25/2018 2:40PM

Ahh. And it's up to the borrower to pay? Nevermind. ** -- hoolstoptheheels 04/25/2018 2:47PM

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Net you lived his 'ownership' society plan. -- Shenhoo 04/25/2018 2:43PM

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