“Deposit Advances” Land individuals in the Same Bad Place as pay day loans, Senate Is Told

Whenever Wells Fargo rejected Annette Smith, a 69-year widow that is old away from social protection, for a little personal bank loan to obtain her automobile fixed, the financial institution suggested its online Deposit Advance Program. Utilizing the click of a switch, she got the $500 she required. However the short-term, high interest loan ensnared her in a vicious years-long period of borrowing.

The moment Smith’s security that is social hit her account, Wells immediately deducted the entire quantity of the advance and also a $50 solution cost.