Big Banks Overdraft Fee Rates, Exposed! Payday Loans Save You Money
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Big Banks Exposed for Cheating College Students and Targeting Elderly with Overdraft Fees. Banks Exposed for Lying about the cash advance industry in order to hide their extremely high fees.
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personalmoneystore.com moneyblog 2008 08 04 banks caught lying about the pa… personalmoneystore.com moneyblog 2008 08 04 banks caught lying about the pa…]
Posted Tuesday, August 5, 2008
I can just imagine! Banks think they are so sneaky. It doesn’t surprise me that banks are scamming the young and old.
Banks try to give the payday loan industry a bad reputation by pointing out the high interest rates on payday loans. But the interest rates on overdraft fees far exceed the interest rates on payday loans! So if you have to choose between a payday loan or an overdraft, a payday loans is definitely the way to go. With a payday loan you can get money exactly when you need it, and you don’t have to pay the ridiculous overdraft fees charged by the bank.
There are a lot of negative feelings about payday loans because people say that the APR is so extreme. But if you compare the APR of taking out a payday loan with the APR of say a bounced check, credit card fees or a utility bill it doesn’t look so bad. For instance, if you take out a $100 payday advance there is a $15 fee which is equal to 391% APR. If you bounce a $100 check though with a $48 NSF and merchant fees the APR is 1,251%! Say you’re late on your credit card payment, if you have a $100 balance with the $26 late fee the APR is 678%. And if you are late on your $100 utility bill and there is a $50 late fee and reconnection fee the APR comes to 1,304%. Crazy! So what do you think would be the better option? Late on your bills or taking out a payday loan to cover it?