CFPB online pay day loans hit customers with concealed danger

CFPB online pay day loans hit customers with concealed danger

File picture drawn in 2010 programs neon indications illuminating a cash advance company in Phoenix. (Picture: Ross D. Franklin, AP)

Customers whom seek out online loan providers for payday advances face concealed dangers of high priced banking charges and account closures, based on an analysis that is federal Wednesday.

1 / 2 of the borrowers whom got the high-interest loans online later had been struck with on average $185 in bank penalties for overdraft and non-sufficient funds costs as soon as the loan providers presented more than one payment needs, the buyer Financial Protection Bureau analysis discovered.

1 / 3 for the borrowers whom racked up a bank penalty eventually faced involuntary account closures, the report additionally found. (more…)

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