Question

Valué the ethics of the banks assisting in collection of the payday loans

Answer 1

Payday loans are high interest loans that are often made for short duration. Majority payday lenders require the borrowers to provide them access to their checking account for automatic deduction of the amounts due under the loans. Most banks have assisted and acted as facilitators for the payback industry. When the borrowers fails to repay the loan, payback lenders exercised their rights to withdraw funds directly from the checking account of the borrower; and consequently due to the interest and penalties the withdrawals so high that borrowers have to pay significant overdraft fees or finish with no money. The value of ethics is almost negligible as the practices of loans industry are terrible as they charge heavy late fees and the borrowers accounts continue to be drained by the payback lenders. Furthermore some banks violates the law by allowing the amount withdrawals by payback lenders that prohibit such type of loans and are illegal unenforceable contracts