“We additionally like to encourage innovation and obtain banks to test out new items,” Reynolds says.
People Union Bank in Shelbyville, Ky., is among the banking institutions playing the FDIC system.
“We were simply because numerous (of your clients) had been likely to payday loan providers and spending interest that is ridiculously high and charges,” says Kimberly Davis, very first vice president of advertising and item development at Citizens Union Bank. “Our bank had been trying to make a move in an attempt to assist individuals from being taken advantage of.”
Although the small-dollar loans provided by banks like people Union are the exact same credit that is relaxed as conventional payday advances, they usually have a reduced rate of interest (18 % at people Union) and no closing charges or concealed costs such as for example prepayment charges, Davis claims. Read more →