A recent summit of experts from the lending industry, entrepreneurs, and elected officials produced no tangible solutions, but underscored the deep divide between large banks and the credit needs of the average American.
The issues being addressed were the lack of affordable credit available to Americans as well as lending practices that prevent the poor and credit challenged from purchasing homes and cars. The group auspiciously sought a compromise between the nearly criminal interest rates charged by ”payday” or ”auto title” lenders and the tightfisted lending practices of major banking institutions. There needs to be a middle ground for people who need auto loans with bad credit.
The only answer that came out of the summit was that everyone agreed that there was a need. No one agreed on what the need was or how to address it, if it were ever discovered. How about a lending institution that did not seek the maximum allowable profit while viewing people as individuals instead of numbers on a page. Someone could go out on a limb and call it truly responsible lending.