AFR Statement: Online and Storefront Payday Lenders are More Alike than Different, CFPB Report Shows
“About half of all online payday loan customers end up paying fees ($185 is the average amount) triggered by failed debit attempts. Some lenders keep on trying to collect in even when there is likely to be no effect other than to increase the cost to the borrower. Some companies will even break a payment into multiple smaller amounts, submitting three $100 requests, for example, instead of one $300 request. A third of the customers hit with such penalties end up having their bank accounts closed involuntarily.”