The high-cost, quick-fix deposit advance loans made available from some banking institutions will undoubtedly be discontinued in 2014 after customer advocates dubbed these products as financial obligation traps.
At the time of Saturday, both Fifth Third Bank and Wells Fargo, which had clients in Michigan, will place restrictions on new clients signing up for deposit advance services and products.
Current clients could have a little more time and energy to make use of such loans before the credit products are phased out, but customers nevertheless must get ready for modification ahead.
A deposit advance is really a loan that is small-dollar frequently for approximately $500 or less, which is marketed as one thing getting your money away from a jam. In order to have an advance, clients will need to have direct deposit of the paycheck or any other earnings to a checking account or prepaid credit card.