Wednesday , November 14 2018
Home / Zerohedge / Need Cash Fast? US Bank Unveils Payday Loan Program With 88% APR

Need Cash Fast? US Bank Unveils Payday Loan Program With 88% APR

Summary:
Just as Goldman Sachs is putting the breaks on what had been a rapidly expanding consumer lending business amid growing doubts about how its billion portfolio might perform during a downturn, US Bank is gambling on the riskiest form of consumer credit, offering old-fashioned pay-day loans with a digital twist. Last month, US Bank introduced "Simple Loan", an online-lending platform that combines the ease of Quicken Loans' app-based platform with usurious interest rates. ICYMI - US bank will loan you money for 3 months at 70.65% APR if you sign up for automatic [email protected] @DavidBCollum @TheLimerickKing pic.twitter.com/yknbhGCkNl — SheepleAnalytics (@SheepleAnalytic) October 8, 2018 Lynn Heitman, executive vice president of US Bank Consumer Banking Sales and Support, told

Topics:
Tyler Durden considers the following as important:

This could be interesting, too:

Tyler Durden writes The End Game In Afghanistan Is Beginning

Tyler Durden writes Trump To Submit Written Replies To Mueller Probe Questions “In Coming Days”

Tyler Durden writes Mauldin: A Worldwide Debt-Default Is A Real Possibility

Tyler Durden writes Feds “Harden” San Diego – Tijuana Border As LGBT Caravan Migrants First To Arrive

Just as Goldman Sachs is putting the breaks on what had been a rapidly expanding consumer lending business amid growing doubts about how its $4 billion portfolio might perform during a downturn, US Bank is gambling on the riskiest form of consumer credit, offering old-fashioned pay-day loans with a digital twist.

Last month, US Bank introduced "Simple Loan", an online-lending platform that combines the ease of Quicken Loans' app-based platform with usurious interest rates.

Lynn Heitman, executive vice president of US Bank Consumer Banking Sales and Support, told MarketWatch that the loans provided a "trustworthy, transparent" option.

Need Cash Fast? US Bank Unveils Payday Loan Program With 88% APR

The process is relatively quick and simple for customers who have a checking account with US Bank. Simply log on to the US Bank mobile app and apply to borrow up to $1,000. The loan is deposited directly into the applicants' checking account, then must be repaid in three installments over three months. Users who opt to have the loan payments debited directly from their checking accounts will pay $12 in interest for every $100 borrowed. Those who don't will face a slightly higher rate of $15. Borrowers who choose automated payments will pay a 70% APR, while borrowers who opt for manual payments will pay an 88% APR.

Need Cash Fast? US Bank Unveils Payday Loan Program With 88% APR

In marketing materials released by the bank, Heitman said the program incorporated extensive feedback from US Bank customers. "It was the right thing to do for our customers," Heitman said.

All US Bank needs now is catchy jingle and they'll be good to go...

Tyler Durden
Tyler Durden (a pseudonym) represents the idea that a return to truly efficient markets is a possibility and a necessity. After having experienced the inner workings of capitalism at various asset managers and advisors, Tyler believes that the current model is flawed and a deleveraging at every level of modern society is needed to reinspire the fundamental entrepreneurial spirit.

Leave a Reply

Your email address will not be published. Required fields are marked *