Who is behind the Payday loans?

Question by orchidmg: Who is behind the Payday loans?
They aren’t federal companies. Not banks. So who funds them with the money to give to the customers? Who is making the profit?

Best answer:

Answer by crystal_lipp
Sub-Prime Lenders!

Payday loans are a form of specialized lending not typically found in state nonmember institutions, and are most frequently originated by specialized nonbank firms subject to state regulation.

Insured depository institutions may have payday lending programs that they administer directly, using their own employees, or they may enter into arrangements with third parties. In the latter arrangements, the institution typically enters into an agreement in which the institution funds payday loans originated through the third party. These arrangements also may involve the sale to the third party of the loans or servicing rights to the loans.

Hope this helps – gotta love the Lenders!

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