Bank Payday Loan Products

Critics want to scowl at your payday loan product.  Send them over to Wells Fargo, 53rd or US Bank.

Wells Fargo’s calls it a Direct Deposit Advance.

“This is a line of credit, not a loan. You may make advances as often as you like in increments of $20 up to your available credit limit.”

  • You have to have direct deposit
  • $7.50 per $100 borrowed.
  • Up to $500
  • No cool off period.
  • Repayment Plan:  Pay the loan off $100 at a time, until paid in full.  Once paid, the lower the amount you can re-borrow.
  • Charge a $35 late fee (no grace period), if the loan is not paid in full on time.  That’s appr. $9 per $100 on a $300 loan.
  • Can collect collection costs an reasonable attorney’s fees as allowed by state law.
  • Not offered in all states (CT, FL, MD, NY, NC, PA, SC, VA, DC).

The product is a lot cheaper than a conventional payday loan, but the bank is not taking a large risk (compared to payday lenders) and cherry picking the good customers.

The huge advantage is that banks have deposits and they get bailed out by the government.  We don’t.

Here are their full terms and conditions.

53rd also has a product called Early Access.  This product is $10/$100 for 30 days.

US Bank’s product is called Checking Account Advance.  This product charges $10/$100, but is due on your next pay date.  This makes it the most expensive of the three banks.


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