Apparently, Regions Bank found a way to offer a payday loan for a third less than most â€“ at $10 per hundred borrowed, as opposed to the national average of about $16.
And the bank still got criticized for it to the point where they no longer offer the loans.
You have to wonder exactly what the motivations are of those who oppose a payday loan, when offered at rates well below existing ones.Â Â Look, this is innovation at work.Â The bank figured out how to make the deal work for them and their consumers at lower rates.
Still not good enough.
So that leads me to wonder what price is acceptable to these opponents?
Is it $9.99?Â How about $9?Â $8?Â $7.
Or is it the 36% APR which they already know is too low for a payday lender to stay in business?
Iâ€™d love to know the answer but somehow they never offer any actual answers.Â It makes me think that these opponents are really just trying to kill payday loans because they donâ€™t like them, or because they have some hand in a competing business.
I also wonder who put the squeeze on Regions.Â Were they threatened by regulators?
And where’s the coverage of this story from a competition angle?