The consumer loan products that we offer through our FinTech relationships constitute a much more consumer friendly alternative to payday loans. For nearly two decades, the largely unregulated payday loan industry has offered financially desperate consumers payday or deposit-advance loans that frequently carry annual percentage rates (APRs) upwards of 400% and at times exceeding 700%. In addition, these payday loans often require a lump-sum repayment and other highly unfavorable terms that can result in these lenders inducing repayment by unethical means, such as rolling over existing loans into loans that can lead to ever increasing debt and fees.
In contrast to payday loans, CCBank’s loan programs with its FinTech partners are subject to significant regulatory scrutiny and oversight by the FDIC and the Utah Department of Financial Institutions; each of which requires us to closely monitor and appropriately manage all of our FinTech arrangements and loan products.