
Payday Lending: Will Anything Better Replace It? - hcho3
http://www.theatlantic.com/magazine/archive/2016/05/payday-lending/476403/?single_page=true
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byoung2
Wells Fargo used to have a service like this [1]. You could get up to half
your regular direct deposit amount or $500, whichever is less. You were
charged $2 for every $20 of the loan amount, and it was automatically deducted
from your next direct deposit. At that rate, assuming 1 direct deposit per
month, that would be 120% annual interest. The ATM would suggest this
alternative if you were about to withdraw more money than you had available,
resulting in overdraft charges. I would think more options like this (but with
more reasonable fees and flexible repayment terms) would be a preferable
alternative to payday loans.

1\.
[https://www.wellsfargo.com/about/press/2014/20140417_direct-...](https://www.wellsfargo.com/about/press/2014/20140417_direct-
deposit-advance/)

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Osiris30
LendUp etc try and tackle this space. But I would think the issue for tech
startup, is that the people and families in most need of it, will not have the
data history for a big data solution?

