Category Archives: Banks

Big bank payday bombshell

In an article in Business Week titled, Banks May Use Payday-Style Loans to Replace Lost Overdraft Fees, analyst predict the use of “payday loan” type products to recover the more than $15 billion in lost nsf fees. “Legislation pending in Congress would exceed the Fed’s rules, limiting banks to one overdraft fee a month or […]

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New credit card regulations

A little off topic, but interesting none the less.  Some of the changes include: “Card companies must now tell customers how long it would take to pay off the balance if they only make the minimum monthly payment. Customers can only exceed their credit limit if they agree ahead of time to pay a penalty […]

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25% of the population

A journalist for the Washington Post estimates that 60 million people have limited or no access to banks or other traditional financial services. The article is more of a call to arms for banks. It’s titled “FDIC: Quarter of U.S. households have limited or no access to banks.” I think this journalist is backing into […]

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How naive is NPR

I expect a little more from NPR. This reporter is pronouncing payday loans dead b/c the FDIC got banks to put $28M on the street and now no one’s taking out payday loans? That’s like saying Pfizer is selling their prescription drugs direct, so Walgreens is going out of business.

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Bank customers must authorize overdrafts on ATM purchases

The Federal Reserve beat the Federal Government to the punch on ATM overdraft charges. Banks will have to secure their customers’ consent before charging large overdraft fees on ATM and debit card transactions, says the AP News. Payday Pundit makes a good insight on this move by the Federal Reserve: “The Fed, of course, objects […]

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Where do payday lenders get financed?

At, we know that Wells Fargo does business with 9 substantially large lenders including: including Advance America, Ace Cash Express and Mister Money. Capital is a rarely discussed subject among lenders, although it’s probably the most important component of the business. You can’t get big without financing, whether it’s bank money or investor money.

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Wow, 893 comments

Banks run lots of fancy commercials that contributes to their image, but when it comes to working their system, they’re near the top. This USA Today article titled Anger at bank overdraft fees gets hotter, bigger and louder is all over the Internet. What I think is remarkable are the 893 comments that have been […]

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The Bite of Bank Fees

Banks are raising their NSF fees. The average fee increase $2.50 to $27.50 this year. The thing with NSF’s is that since banks charge them, they’re ok or acceptable. I wonder why that is? Here is a NSF horror story.: Bank customer Laurie Harris: Early last month, she deposited money into her Bank of America […]

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How to pay $37 for a Starbucks latte

Head over to Payday Pundit and find out why a woman paid $37 for a Starbucks coffee drink.

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Fifth Third Bank offering payday loans

Fifth Third Bank is now offering payday loans. They call it “Early Access Checking”. I think this is great. More competition means the customer wins. Here’s how their product works: You must have a job and direct deposit. The term of the loan is 35 days and the rate is 120% or $10 per $100 […]

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