Delaware Bank Discontinues Payday Loans, Other Loans
First Bank of Delaware discontinued the use of payday loans a few months ago. We had the report.
Now, the company has announced it’s also dropping tax refund anticipation loans. These resources are similar to short term payday loans. They had drawn criticism from consumer advocates due to the high cost to borrowers.
First Bank of Delaware said the move would “have a material adverse impact” on the bank’s earnings, but didn’t specify a figure. No quarterly reports have been announced since the instant payday loan removal, so there's no way for the public to know the effects of that decision at this time.