texas car title and payday loans

The theory that banking institutions and payday loan providers are split is, some state, a fiction that is polite.

The theory that banking institutions and payday loan providers are split is, some state, a fiction that is polite.

The pipes of payday lending

But where banking institutions actually provide a lifeline to payday loan providers is through managing the real way the loan providers procedure re re payments. Banks plan the payday lenders’ costs through the automated Clearing home, or ACH, the nationwide system for verifying and clearing monetary re payments. The banking institutions function with intermediaries called payment that is third-party; this means the banks together with payday lenders never ever theoretically touch one another.

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