New Study Finds 4,547% Interest Rates on Bounce Protection Loans

WASHINGTON, DC – The median interest rate on bounce protection loans is in excess of twenty times that of payday loans concludes a study by Mark A. Fusaro, Department of Economics, East Carolina University.  
 
The independent study, “Hidden Consumer Loans: An Analysis of Implicit Interest Rates on Bounced Checks,” finds that “Payday lending attracts attention for its high interest rates, but bounce protection loans are much more expensive. When the amount borrowed is low and the time outstanding is short, the effective interest rate paid on this loan can ... Continue Reading