FDIC Survey Says 15% of Utahns Depend on Alternative Funding Such as Payday Loans

The FDIC is asking banks to consider creating appropriate credit products, including short-term, small-amount loans to meet immediate financial needs, as well as low-cost transaction accounts and savings accounts. GetECash responds.

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I don't think banks are capable of servicing the payday loan population. They have too much red tape and hoops to jump through. Banks just can't get cash to people in 24 hours. It takes them weeks to get the kind of unsecured loans we do”

Lindon, UT (PRWEB) January 7, 2010

Utah payday loan company GetECash - http://www.GetECash.com – reports the findings of an FDIC survey showing that 15. 2% of Utahns rely on sources other than banks for their financial needs.

Residents of Utah rely less on funding sources such as payday loans, money orders, check cashing, rent-to-own, pawn shops than the rest of the country. These are people who do not use traditional banks. In the rest of the US, 18% rely on alternative sources rather than opening a checking or savings account.

The FDIC is asking banks to consider creating appropriate credit products. These products include short-term, small-amount loans and low-cost transaction accounts and savings accounts. The problem is, according to GetECash, these kinds of loans have a very high default rate. They are deemed too risky or expensive for traditional banks to offer them. That is why there is a market for payday loan and other such businesses that specialize in fast, short-term emergency loans. It’s also why the interest rates on these products are so high.

“I don't think banks are capable of servicing payday loan population. They have too much red tape and too many hoops to jump through. Our population literally needs cash within 24 hrs. Banks just can't do that. It takes them weeks at a time to get the kind of unsecured loans we can get,” says Austin H. Marketing Director at GetECash.com

The survey was conducted by the Census Bureau for the FDIC in January. Those who have stopped using banks say it’s because of overdraft fees, service charges or high minimum-balance requirements.
Unlike many states, the state of Utah does not regulate payday loan companies. There are no caps on paycheck advances. The state does not restrict fees, finance charges, nor the number or total amount of payday loans.

Utah’s Attorney General Mark Shurtleff, Utah's highest-ranking law enforcement officer has historically supported the payday lending industry. In an article in the Deseret News, Shertleff said, “banning 'payday loans' could hurt the poor more than it would help them and could force more of them into bankruptcies or repossessions.”

Shurtleff contends payday loans are another option that is an alternative to paying bank fees associated with bounced checks, filing for bankruptcy or going to a pawn shop. He also claims state regulators have received few complaints from people who have taken out payday loans.

The survey can be found at http://www.fdic.gov/unbankedsurveys

About GetECash.com
GetECash.com is a direct lender payday lender based in Utah that finances their own loans. Borrowers are required to show proof of a regular earned income of at least $1,000 per month, Social Security or other benefits income of at least $800 per month, have a bank account, and are at least 18 years old to qualify for a payday loan.

The Annual Percentage Rate (APR) for a payday loan varies based on term of loan.
Borrowers are responsible for the repayment of the entire loan balance, together with all interest owed.

Get tips on the GetECash.com blog at http://www.getecash.com/blog

Apply for a payday loan online at GetECash.com

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