Nevertheless, better algorithms, discussion customer and design solution do not erase most of the issues of pay day loan critics.
A non-partisan, non-profit that examines predatory lending, the fact that ZestFinance and LendUp bother to gauge the default risk of borrowers at all shows they’re acting in better faith than typical payday lending operations on the one hand, says Paul Leonard, who heads up the California office of the Center for Responsible Lending.
“All a payday lender will perform is verify that you’ve got a checking account, ” Leonard says that you have income and. “they’ve a company model that depends on borrowers who can’t actually manage to repay their loan. “