LIL Ol' You

Google and Facebook are banning ads from payday lenders and bail bondsmen. You might think you’re better than these people. But in the eyes of consumer advocates, you’re not. All of you do the same thing, – lend to low-income consumers. Yes, I know, you don’t actually lend to them, but again, others don’t see this difference.

Low-income lending includes bail bonds, payday loans and subprime auto finance, regardless of whether you keep the paper or not. The biggest difference between a buy-here, pay-here dealer in Greeley, Colo., and Santander Consumer is Mick Mulvaney is unlikely to go to bat for Herbies. It’s nice to own friends in high places.

So I hate to say it, but you’re going to need to stick together. Don’t bash payday lenders or call for more regulation of subprime creditors to diminish competition. There is no outrunning the bear. It’s not over until you all get eaten.

 

Last modified on Thursday, 05 July 2018 15:49

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