PALM BEACH GARDENS (Fla.) — With bank credit still tight, many seek to borrow from family as a last resort.
At Virgin Money USA, the volume of “social loans” — loans between people who know each other — has doubled to $400 million since October 2007. The Waltham, Mass.-based company said loans arranged for family members are 53% of its social loans.
Fed may regulate overdraft fees
The Fed is debating whether reign in pesky overdraft banking fees. WSJ’s Kelsey Hubbard speaks to WSJ reporter Kelly Evans about whether consumers will really benefit.
But not all family lenders are happy campers. Just ask actor Richard Dreyfuss, who is embroiled in a family loan dispute in Los Angeles Superior Court.
While bankers often seek to keep loan delinquency ratios under 2%, Virgin Money estimates that nearly 5% of its family loans are delinquent.
