PRESIDENT & CEO,
CUSTOMER BANKERS ASSOCIATION
PRIOR TO THE UNITED STATES SENATE SPECIAL COMMITTEE ON AGING
PAYDAY ADVANCES: SHORT-TERM SOLUTION OR LONG-TERM PROBLEM?
Chairman Nelson, Ranking Member Collins and users of the Committee, many thanks for the chance to talk about the liquidity that is short-term of US customers and bank deposit advance services and products. I’m Richard search and I also have always been President and CEO regarding the customer
Bankers Association (вЂњCBAвЂќ). 1
Currently, a calculated 76% of all of the Americans reside paycheck to paycheck. 2 The economy has remained stagnant making customers with less cushion for emergencies, strained credit scores, and less credit choices, making usage of fairly priced short-term liquidity items all that more important. Different credit that is entry-level occur to meet up an array of requirements, including conventional charge cards, unsecured loans, along with other kinds of credit. Regrettably, many customers don’t be eligible for a them. In reaction, some banking institutions have actually selected to provide a deposit advance product to satisfy their clientsвЂ™ need and demand for short-term, small-dollar credit. 3
Deposit advance services and products, offered today by just six banks, provide a critical short-term, smalldollar credit need for customers that do not be eligible for conventional credit items. These items aren’t loans, these are typically credit lines (вЂњLOCвЂќ) paid back immediately from a recurring deposit that is direct. While specific items differ, the absolute most higher level is limited to the lower of a limit (typically $500) or a portion associated with the average paymagent that is recurringe.g. 50 %). Continue reading “CBA PRESIDENT & CEO RICHARD SEARCH, TESTIMONY вЂDEPOSIT ADVANCE PRODUCTSвЂ™”