payday_loans_z

Payday loan customers must have an open bank account in relatively good standing to qualify for cash advances based on check holding. Typical underwriting requirements for these loans include a job or steady source of income, identification, copies of recent bank statements, bills in the customer’s name with address, and other requirements. While payday lenders usually do not request a credit report on prospective borrowers, many do check specialized credit reports that track customers who bounce checks.

A Senior Vice President from Stephens reported in October that 12,000 to 14,000 stores make 100 or more loans per month, with another 8-10,000 smaller volume operators. Industry statistics indicate that 65 million transactions to 8 to 10 million households produced $2.4 billion in fee revenue. The Fannie Mae Foundation reported in August 55 to 69 million payday loan transactions a year, with a volume of $10 to 13.8 billion, producing $1.6 to 2.2 billion in fees.