Date: May 10, 2016Author: admin
“The report found that online lenders’ attempts to debit payments from a consumer’s checking account add a steep hidden cost to online payday loans. Half of all accounts have at least one payment request that results in overdraft or failure due to non-sufficient funds during the 18 month observation period. These accounts are charged an average of $185 in overdraft and non-sufficient funds fees by their institution on attempted payment requests from online lenders during the 18 months. And one third of those borrowers who get hit with a bank penalty wind up having their account closed involuntarily. The report also found that despite this high cost to consumers, lenders’ repeated debit attempts typically fail to collect payments.” – Desmond Brown
Read the report to learn more:
Key findings of this report include:
Office of Financial Empowerment
Consumer Financial Protection Bureau
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