As Americans continue to face persistent affordability concerns, they’re turning to loan tools that are actually leaving them even more strapped for cash.
Those tools include apps that allow individuals to receive cash in between paychecks and are costing them hundreds of dollars each year in fees, according to a recent report. An analysis by the Center for Responsible Lending’s Julian Bond Institute of bank transactions from 10,000 consumers, found 96% of direct-to-consumer versions of payday loans included fees or “tips,” which amounted to nearly $208 per year on average, or about $17 per month.
