25 Nov
2009

Hi Guys I am posting this for Beth she is off to the bay area for Turkey Day.

By Beth Nguyen for Money Now! USA

According to this report from the CFSA (http://www.cfsa.net/downloads/contrasting_reports.pdf ) Payday loans cost less than NSF and banking fees. This report states that the Average APR for Payday Loans is 391% while the APR for Bounced checks fees run between 478% and 1,353% APR !!

Needless to say the banks spend millions each year to not let this truth out of the bag!!

Let’s be truthful, who do you think has more expensive overhead?

The  local Payday Loan store, or online payday lender, or your bank?

Have you seen the bonuses these Bank CEO’s are getting?  Have you read about the company jets or the 71 dollar a square foot costs for rent in Manhattan?  (About 15 Times the office rent is Boise, ID)

The money has to come from somewhere, and it comes from you! Banks make their money from fees folks in fact according to this research the 18,000 Financial Institutions and credit unions collect 32.6 billion each year from 56 million checking accounts. If you do the math that is an average of:

$582.00 in fees for each account!! Every year….

From the article:

“While some groups have maligned payday lenders for the relatively high

interest rates they charge, the cost of a payday loan can be significantly less

than the cost of a bounced check. Indeed, bank and credit union NSF fees are

similarly expensive — or in the case of repeated fees accrued from multiple

bounced checks — substantially more expensive. If, on average, 13 checks

are overdrawn in a year, and the consumer were to incur a $28.51 fee for

each, then the annual cost of this service would be $370.63. Alternatively, if

the typical payday-loan borrower opts for as many as seven loans (at a perloan

cost of $45 per $300 borrowed), over the course of a year the total

interest paid would be $315. The State of Washington, for example, imputed

a 499.7% APR from just two $300 checks.20 If overdraft fees are incurred from

NSF checks written for smaller amounts, then the imputed APR would be substantially

higher than in Washington State’s example.21 Because overdraft

protections are not subject to Truth In Lending Act disclosure requirements,

NSF fees may represent a significantly larger economic cost than generally

understood.”

According to this report from the CFSA (http://www.cfsa.net/downloads/contrasting_reports.pdf )

http://abcnews.go.com/Business/story?id=6150746&page=1&page=1

Here is the CFSA report:

http://www.cfsa.net/downloads/contrasting_reports.pdf

Oh and of course we have thew lowest rates on payday loans!  http://www.MoneyNowUSA.com