Payday Pundit » non sufficient funds fees http://paydaypundit.org News and Information About The Payday Lending Industry Mon, 21 Jun 2010 17:49:39 +0000 http://wordpress.org/?v=2.9 en hourly 1 In states without payday lending, consumers pay more bank and credit union fees http://paydaypundit.org/2009/02/17/in-states-without-payday-lending-consumers-pay-more-bank-and-credit-union-fees/ http://paydaypundit.org/2009/02/17/in-states-without-payday-lending-consumers-pay-more-bank-and-credit-union-fees/#comments Tue, 17 Feb 2009 20:46:08 +0000 Payday Pundit http://paydaypundit.org/?p=2522 Nationally, the average American household with a bank or credit union checking account pays $368.51 each year in overdraft protection (ODP) or non-sufficient funds (NSF) fees.

In states where payday loans are available, the average consumer pays $240.79 per year in ODP and NSF fees–$127.72 less than the national average. On the other hand, in states where payday loans have been eliminated, checking account holders pay, on average, $541.65 each year—that’s $300.86 more than their counterparts who live in states with payday loans.

A customer typically pays $15-$17 per $100 for a payday advance. Comparatively, the average ODP/NSF fee is $27, regardless of the amount of the overdraft. Many informed consumers choose to take out a payday loan rather than overdraw their checking account. This explains why, in states where payday loans are an option, consumers pay less.

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