Employer-Based Loans Gaining Popularity

Employer-based loan programs are on the rise, with payments back to the third-party “shadow” lending companies coming directly from worker paychecks. Banks have tightened up lending standards in the wake of the financial crisis, putting individuals with poor credit in a bind. Now some companies with a low-wage work force are partnering with lenders to offer loans that will give their employees more financial stability and are an alternative to controversial payday loans that many states have banned outright.