Although former Consumer Financial Protection Bureau Deputy Director Raj Date called on banks to create an affordable payday loan system, community bankers in California's Central Valley are opposed to doing so. They say there is no demand for it, and regulations would make such a venture unprofitable. At the recent Underbanked Financial Services Forum, Date said banks could turn a profit with interest rates lower than those charged by payday lenders due to their sophisticated operating systems and data sets. However, banks disagree because they do not operate like payday lenders and could not provide small, short-term loans and simultaneously meet the related regulations and account for the computer system and labor hours used. Moreover, they note that banks scrutinize loans carefully to gauge credit-worthiness -- something payday lenders generally do not do -- and they are not willing to scale back the screening process to make payday loans feasible. Roy Estridge of Valley Business Bank also points out that payday loans have undesirable terms and conditions. "You have to ask are they being taken advantage of? And yeah, I'd say they are. People get caught borrowing money to cover more debt and it starts snowballing," he says.