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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 search asserts that bank payday advances had been a ongoing solution to customers and argues they must 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 customers.

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