Overdraft Loans: Survey Finds Growing Problem for Consumers
Published: April 24, 2006
VULNERABLE CONSUMERS CAUGHT IN OVERDRAFT CYCLE
CRL has conducted a survey of overdraft loan customers. Our findings suggest that: * Sixteen percent of overdraft loan users account for 71 percent of fee-based overdraft loan fees. *Repeat users are more often low-income, single, non-white renters. * Repeat users are in effect using the overdraft loans as an expensive substitute for a line-of-credit, and are paying fees that can be as costly as payday loans.