"Ads are the cave art of the twentieth century."Marshall McLuhan
|
Warning: fopen(stopka/index.php) [function.fopen]: failed to open stream: No such file or directory in /stopka.php on line 117
Warning: fopen(stopka/6655d922aa2c1bbb44b556c10262be35.txt) [function.fopen]: failed to open stream: No such file or directory in /stopka.php on line 117
| |
Business Loans And Mortgages
With so many different options a borrower can choose from when looking to finance a business or commercial property, it may be difficult to decide what will work best for you or your company. For example, there are SBA loans for small businesses and ...
Home Equity Loans Online - Easy, Quick Application Process
Applying for a home equity loan has never been easier. Today, many mortgage lenders have online sites which allow you to complete an application and receive a response within 24 hours. Those hoping to acquire a home equity loan should consider submitting ...
PayDay Cash Advance Loans - The Benefits of Using the Payment Protection Plan
Payment protection plans are offered by payday companies to protect you in any number of unexpected situations. The payment protection plan is an inexpensive form of insurance that payday companies offer on all payday loans. The types of things covered by ...
|
|
|
| |
According to the New York Times "many national banks are encouraging clients with low balances to overdraw their checking accounts, allowing the banks to avoid credit laws and collect billions of dollars in new fees." You might now realize that pay day loans are actually much more economical than overdraft fees from your bank.
The banks say that the overdraft programs, which cover bounced checks and allow people to overdraw their accounts, are a service to their clients. But these overdraft programs are certainly a bad deal for consumers.
Unlike typical lines of credit, which charge annual interest of up to 20 percent, the new overdraft plans charge flat fees for every processed overdraft, translating into an annual interest rate of over 1,000 percent. Unlike lines of revolving credit, which allow customers to repay the loans at their convenience, these plans require clients to bring accounts back into positive balance in only a few days. While most traditional lines of credit have limits of thousands of dollars, the new overdraft plans have limits of $100 to $300. After the overdraft is expended the banks again start bouncing checks.
The New York Times also states that "the rapid spread of the programs has turned overdrafts, and the fees that come with them, into one of the largest sources of profit for banks, according to consultants and statistics compiled by government bank regulators. Washington Mutual, the nation's seventh-largest financial institution and the largest to promote overdraft protection, charged customers more than an estimated $1 billion in overdraft fees last year."
Industry analysts claim the overdraft plans, which contain fees as high as $35 per overdraft, are really high-interest loans targeted at working-class customers. Unlike pay day loans, which charge only a regulated flat fee for providing direct cash, bank overdraft programs work automatically with checks and debit cards. Customers often don't even realize they have overdrawn their checking and savings accounts until they are notified by from the bank.
"Some banks are looking at the fact that some consumers barely make it from pay day to pay day and have a very low balance, and instead of offering them a beneficial service, they are charging their customers bounced-check fees to take advantage of the situation," said Jean Ann Fox, director of consumer protection for the Consumer Federation of America.
A recent study by the Federal Reserve last year found that banks have increased raised their overdraft fees 24 percent from 1997 to 2001, to an average of $20.42. That's an average of $20.42 for each individual overdraft item! And it gets worse. Banks have sophisticated software programs that ensure that your largest checks and debits are processed first. This means that, if your account if going to go negative and overdraft is required, that a higher number of smaller transactions will each incur the overdraft fees. Add in the average merchant penalty of $15 per returned check, and five overdraft items for $200 could add up to almost $375 including charges! By contrast, pay day loans for $200 would incur fees of only $45-$60.
When you're caught short between your paychecks, take a closer look before using your bank's overdraft protection programs. It's very likely that you'll find pay day loans from Personal Cash Advance: payday loan will save you quite a bit of your hard earned cash over just a 10-day period.
About the author:
Alan is the site owner of http://www.dezeinfo.com, which is a loan site that provides you information on payday loan such as how to get started, where to apply, and how to avoid online loan scam.
|
|
|
|
|
|
 |
Student Loans: The Real Numbers to Worry AboutHuffington PostNews stories about student loan debt have suddenly become as numerous as stories on the US economic recovery -- I counted over 20000 articles/blog posts for each in the past month. Why the firestorm of press coverage? First, there's the possible ...and more » |
|
Wen Call for Growth, Not Loan Push, Echoed by CabinetBloombergChina's biggest banks may fall short of loan targets for the first time in at least seven years as an economic slowdown crimps demand for credit, three bank officials with knowledge of the matter said this week. Industrial & Commercial Bank of China ...and more » |
|
Suzlon Rebounds as Loans Promise to Avert DefaultBusinessWeekBy Natalie Obiko Pearson on May 25, 2012 Suzlon Energy Ltd.'s (SUEL) convertible bonds are rebounding from a four-month low after India's biggest wind-turbine maker obtained loan pledges to avoid default in the coming three weeks.and more » |
|
