Apr
20
Bank Fees Are a Hidden Cost of Payday Loans
By
Once a single automated loan payment request fails, it can set off a domino effect of fees and other repercussions. CreditKevin J. Miyazaki/Redux for The New York Times
Payday loans are well-known for their high interest rates and fees, but for many borrowers, they have a second, less obvious cost: the bank fees incurred when automatic loan repayments fall short.
Bank overdraft and insufficient-fund fees often add hundreds of dollars to the cost of a loan, according to a study released Wednesday by the Consumer Financial Protection Bureau, which is preparing to propose new rules for the payday loan industry…
Bank Fees Are a Hidden Cost of Payday Loans
