Robbery at ball-point

Banks and other traditional financial institutions are regulated in such a way so as not to charge usurious fees and strap customers with predatory loan terms. Banks are in business to make money, and sometimes this happens at the expense of the consumer (which then eventually threatens the whole system). So there are regulations in place.


Payday lenders, on the other hand, aren’t so mainstream. They’re fringe banks and so they aren’t regulated in the same way. By the same logic, a bank isn’t a payday lender, and they don’t have anything to do with payday loans.


Banks do something extra, however.