The Truth about Overdraft Fees - Part 2 | Payday Loan Blog: Cash Advances and Payday Loans @ CashNetUsa.com

Make Anyday Payday

The Truth about Overdraft Fees – Part 2

All these numbers add up to some alarming trends. Bretton Woods, Inc., a bank strategy firm, used these numbers to draw some generalities about overdraft fees and the effect they had on consumers. According to their report, the average American household accrues more than 12 overdraft transactions annually, resulting in $368 in fees on average.

The result of these fees is a $37 billion annual industry for U.S. banks and credit unions. An amount, says the firm, which is causing these institutions to become ever reliant on overdraft fees as sources of revenue. “We see no reason for this trend to change,” said report author G. Michael Flores. “Bounced check fees and overdraft protection will have a larger and larger financial impact on households.”

And, ultimately, it is the young, low-income and underbanked that are the ones that will reap these consequences.

To read the FDIC report in full, click here, or for the Bretton Woods report, please click here.

Click here for a short comparison between banking fees and other short-term loan options, such as online cash advance services, presented by the CFSA.

This entry was posted on Thursday, February 5th, 2009 at 10:19 am and is filed under Financial Resources. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

Blog Archives

New customerLoan Application

First Name:*

Last Name:*

Email:*

State:*

Loan Amount:*

*required

Click to Verify - This site has chosen a VeriSign SSL Certificate to improve Web site security

International Sites

* CashNetUSA and third party lender funds are generally deposited via ACH for delivery next business day if approved by 9pm CST Mon. – Thu. or by 7pm CST Sun.

** Due to state and verification requirements, not all applicants for online loans may be eligible for instant approval by CashNetUSA or third party lenders.

*** Some customers applying for payday loans or installment loans may be required to submit additional documentation due to state law and qualification criteria.

† CashNetUSA or third party lender does not perform traditional credit checks as part of its credit transaction approval process, but does verify applicant information via national databases including, but not limited to, Tele-Track and CL Verify. If you have defaulted on past transactions, you may be declined for a cash advance from CashNetUSA.

‡ Maximum funded amount for payday loans or installment loans depends on qualification criteria and state law. See Rates and Terms for details.

++ Please see Rates and Terms to check the availability of online loans in your state. CashNetUSA is not a lender in all states. In some states, CashNetUSA will (i) act as a broker to arrange a loan between you and a third party lender, or (ii) connect you with a financial matching service.

Customer Notice: Payday advances should be used for short-term financial needs only, not as a long-term financial solution. Customers with credit difficulties should seek credit counseling.