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The facts

August 10, 2009 | Wisconsin, industry, regulation | Comments (0)

Larry Meyers gives them to the Wisconsin legislature:

The FDIC said a lot more in their November study of bank overdraft programs. In 2007, payday lenders provided 154 million loan transactions and collected $6.8 billion in fees.

But that same year, bank and credit union accounts were overdrawn by consumers 1.22 BILLION times, generating $35 BILLION in fees.

This bill will force consumers into choices they have already dismissed as being impractical, too risky, or too expensive.

Do not be fooled: credit unions cannot fill the gap that will be created, nor will they be able to offer loans at 36% APR. If that were the case, then hoards of competitors would be in business at 36% APR, and they aren’t. Furthermore, not everyone is a member of a credit union and, as noted above, credit unions are just as nasty as banks in dinging customers for overdraft fees.

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