Business

Activists Warning Consumers About New Bank Loan Product

By Anthony Silva, WBZ NewsRadio 1030
View Comments
(credit: AP)

(credit: AP)

420x316-grad-silva Anthony Silva
Anthony Silva is co-host of the WBZ Afternoon News heard each wee...
Read More

BOSTON (CBS) – As most banks look for new sources of revenue, some are turning to a controversial new product: high-interest, ultra-short-term, payday loans.

But the banks call them something different.

Wells Fargo and US Bank have begun offering loans that customers draw against their paychecks.

But fees are sky high. For a $100, two-week loan, a customer would pay $16.

Edgar Dworsky of consumerworld.org tells WBZ these new products are sprouting as banks’ profits are crimped.

Dworsky says most of these payday loans carry triple digit annual interest rates.

View Comments
blog comments powered by Disqus
Follow

Get every new post delivered to your Inbox.

Join 2,162 other followers