PRESIDENT & CEO,
CUSTOMER BANKERS ASSOCIATION
PRIOR TO THE UNITED STATES OF AMERICA SENATE SPECIAL COMMITTEE ON AGING
PAYDAY ADVANCES: SHORT-TERM SOLUTION OR LONG-TERM PROBLEM?
Chairman Nelson, Ranking Member Collins and people in the Committee, many thanks when it comes to possibility to talk about the liquidity that is short-term of US consumers and bank deposit advance services and products. I am Richard search and I also have always been President and CEO associated with customer
Bankers Association (вЂњCBAвЂќ). 1
Presently, an approximated 76% of all of the Americans reside paycheck to paycheck. 2 The economy has remained stagnant making customers with less pillow for emergencies, strained credit scores, and fewer credit choices, making usage of fairly priced short-term liquidity items all that more important. Different credit that is entry-level exist to fulfill a wide range of requirements, including conventional bank cards, unsecured loans, along with other types of credit. Unfortuitously, many customers try not to be eligible for them. In reaction, some banking institutions have actually opted for to provide a deposit advance item to meet up their clientsвЂ™ need and need for short-term, small-dollar credit. 3
Deposit advance products, offered today by just six banks, provide a critical short-term, smalldollar credit interest in customers that do perhaps maybe not be eligible for traditional credit services and products.