Companies that take money directly from your salary

OneBlinc echoes this theme. He says he gives a “socially responsible credit rating” and that his credit rating is “for people who work hard and need help making ends meet.” This type of inclusion “is one of the best ways to reduce social inequalities” and is “a real difference with the vicious circle of predatory lending”, defending debtors against “excessive fees from financial institutions”.

Learn between these strains, and you’ll also get an idea of ​​who the specified buyer is and isn’t. There are tens of thousands and thousands of people who put all their bills on one debit card, for budget functions, or on one bank card to accumulate loyalty factors. They are not the first targets here.

However, thousands and thousands more are coming in fast every month and paying a fee to their bank when their check stability can’t cover a cost. Others cannot qualify for bank cards or have lost their banking privileges. They might turn to payday lenders for short-term help, and individual lenders might lure them into a cycle of high-interest debt.

Saving individuals from all of this is, certainly, a noble trigger. Linking compensation to a paycheck is an undoubtedly reliable option to do so.

However, for businesses, the paycheck payment process is secondary. For them, the breakthrough lies in proprietary digital instruments that allow them to lend to individuals, based on their employment status and income, that other companies would ignore. OneBlinc doesn’t even use credit checks, although it does report buyer funds to Equifax, Experian, and TransUnion.

“We don’t think about credit ratings,” Fabio Torelli, the head of government, said in a 2019 press release, a sentiment he reiterated in an interview this week. “This is the final image of an outdated mannequin that we are determined to disrupt,” the dump continued.

Perry A. Thomasson