Payday Loans Less Expensive than Checking Overdraft Charges or PrePaid Debit Cards?

Published by: Kristy Welsh

We have written articles and blog posts roiling up against the pay day loan industry. But, can payday advances may be less expensive than bank checking account costs or prepaid debit cards?

In accordance with a research because of the consulting company Bretton Woods Inc, U.S. banks recognize the fact middle-income group clients provide the potential that is greatest to harvest charges. The majority of these costs are bank account overdraft fees, accounting for over 90 % of all of the bank costs.

Three quarters of banking institutions immediately enroll customers inside their “overdraft security” programs without formal authorization, and much more than 50 % of banking institutions manipulate your order by which checks are cleared to trigger multiple overdraft charges.

Fee Earnings

  • Bank and credit union earnings from non-sufficient funds (NSF) and overdraft system (ODP) charges surpass $34.7 billion.
  • NSF/ODP cost income by state ranges from almost $40 million in Wyoming to $3.2 billion in Texas.

NSF/ODP Cost per Domestic

  • The nationwide annual NSF cost per home with checking reports is around $343. Continue reading