Signs of Predatory Lending What to Watch Out

Signs of Predatory Lending What to Watch Out For When You’re Shopping for a Loan

Signs of Predatory Lending Unfair Overdraft Practices Bank fees for overdrafts increased by 35% in two years. www. responsiblelending. org

Signs of Predatory Lending Unfair Bank Overdrafts Sign #1: No warning on overdraft charges. Many banks charge an overdraft fee for debit card transactions without giving customers a chance to cancel. Americans could save billion in overdraft fees if they were warned or denied at the checkout. www. responsiblelending. org

Signs of Predatory Lending Unfair Bank Overdrafts Sign #2: Disproportionate fees. The average shortfall for a debit card transaction is $17, while the average overdraft fee is $34. www. responsiblelending. org

Signs of Predatory Lending Unfair Bank Overdrafts Sign #3: Subtracting largest debits first. When balancing customer accounts each day, many banks subtract debits in order of largest to smallest dollar amount rather than in the order the transactions occurred. This can increase the number of overdraft fees the banks charge. www. responsiblelending. org

Signs of Predatory Lending Unfair Bank Overdrafts Sign #4: Holding deposits longer than necessary. Some banks hold customer deposits as long as legally allowed, even when no delay is necessary. This can increase the number of overdraft fees the bank can charge by keeping customers in the negative longer, even if they have deposited sufficient funds. www. responsiblelending. org