By any other name…
March 2, 2009 | Georgia, alternatives, industry, personal finance | Comments (0)“Overdraft protection” is just a payday advance. From the Atlantic Journal Constitution:
Georgia lawmakers shut down the state’s payday lending industry in 2004. But consumer advocates say large banks statewide are making similar short-term loans at astronomical interest rates. They just call it something else: an overdraft charge.
When a consumer swipes a debit card on an account with an inadequate balance, banks usually extend the money these days instead of declining the withdrawal. In return, the bank charges the customer a fee that is deducted — along with the amount overdrawn — when the next deposit is made.
How about giving consumers a choice?
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