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CFPB: online pay day loans hit customers with concealed danger

CFPB: online pay day loans hit customers with concealed danger

File picture drawn in 2010 programs neon signs illuminating a pay day loan company in Phoenix. (Picture: Ross D. Franklin, AP)

Customers whom seek out online lenders for payday advances face concealed dangers of expensive banking costs and account closures, relating to a federal analysis released Wednesday.

1 / 2 of the borrowers whom got the high-interest loans online later were struck with on average $185 in bank penalties for overdraft and non-sufficient funds costs once the lenders presented a number of repayment needs, the customer Financial Protection Bureau analysis discovered.