Now available for sale at Walmart: Dangerous Financial Solutions

Now available for sale at Walmart: Dangerous Financial Solutions

The customer advocates during the Center for Responsible Lending don’t mince words: “overdraft ‘protection’ is a racket; maybe perhaps not a site.” CRL describes:

Transaction shuffling and numerous, excessive charges for tiny shortfalls within their checking records cost Americans billions each year in unjust costs. Over fifty percent of Us americans are now actually residing paycheck-to-paycheck, making a lot of U.S. families at risk of bank overdraft practices being exceedingly misnamed “overdraft protection.”

In place, overdraft “protection” items could become like payday advances, with a high charges substituting for high interest, and customers prone to getting caught in a period of financial obligation they can not emerge from. But as toxic as overdraft services and products may be for customers, they have been extremely lucrative for banking institutions. Some banks make a disproportionate amount of their income relative to overall deposits from overdraft and other fees in fact, according to a recent Wall Street Journal investigation. […]