Dak
mentat
like the article suggests though, Starbucks is 9% profit and they are obviously doing damn fine. There's a surplus of those piece of shit loaning agencies near poor areas, I don't believe they are 'struggling' to stay afloat
In a profitability analysis by Fordham Journal of Corporate & Financial Law, it was determined that the average profit margin from seven publicly traded payday lending companies (including pawn shops) in the U.S. was 7.63%, and for pure payday lenders it was 3.57%. These averages are less than those of other traditional lending institutions such as credit unions and banks. Comparatively the profit margin of Starbucks for the measured time period was just over 9%, and comparison lenders had an average profit margin of 13.04%. These comparison lenders were mainstream companies: Capital One, GE Capital, HSBC, Money Tree, and American Express Credit.
The profit margin averaged across 7 publically traded payday lending companies which included pawn shops were nearly 50% less and "pure" payday lenders were roughly 75% less profitable than "real" lenders, who have have an average of 13.04%. The payday lending companies may not be "hurting for business", but they aren't nearly as profitable as the "non-predatory" lenders. For every sobstory you hear about someone trying to pay back all this interest, you have a ton who don't pay it back.
Edit: Obviously the piece of that writeup I liked the most was talking about the opportunity for "small business home schools" through such a voucher program as he discussed.