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Bank deposit advances are pay day loans in disguise

Bank deposit advances are pay day loans in disguise

In a recently available op-ed, customer Bankers Association President Richard search asserts that bank payday advances had been a service to customers and argues they must certanly be restarted. The reality, though, show that while these loans produced huge costs for banking institutions, these were a usurious financial obligation trap for bank clients.

Just a couple years back, banking institutions had been making APR that is 200%-plus payday, that they euphemistically called “deposit advance services and products.” While deposit improvements had been marketed as a small-dollar, fast solution to a budgetary shortfall, they typically resulted in an debt trap that is expensive. Continue reading Bank deposit advances are pay day loans in disguise