Bank deposit improvements are payday advances in disguise

Bank deposit improvements are payday advances in disguise

In a recently available op-ed, customer Bankers Association President Richard Hunt asserts that bank payday advances had been an ongoing solution to customers and argues which they should really be restarted. The reality, though, show that while these loans produced huge charges for banking institutions, these people were an usurious financial obligation trap for bank clients.

Just a couple of years back, banking institutions had been making APR that is 200%-plus payday, which they euphemistically called “deposit advance items.” While deposit improvements had been marketed as a small-dollar, magic pill to a budgetary shortfall, they typically resulted in a debt trap that is expensive. Continue reading “Bank deposit improvements are payday advances in disguise”