A new survey — conducted by the Online Lenders Alliance, a trade group whose members offer payday loans and expensive installment loans — finds that some customers of banks that offer the products are still turning to higher-cost lenders.
The group says the findings show that its member companies offer a critical service for consumers that should not be curbed through new regulations.
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Andrew Duke, executive director at the Online Lenders Alliance, pushed back against what he called a “false narrative” that the existence of banks’ small-dollar loan products means other options aren’t needed.
“More options for consumers results in better outcomes,” he said. “We’re not opposed to banks or credit unions offering small-dollar loan products to consumers. … However, we are opposed to groups misrepresenting the impact of those options and citing that false narrative to push legislation that would remove some of the options that are available today.”
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