Pay Day Lending: Brought to you by Fifth Third

July 13, 2009

 

            I clicked on this link thinking that it might be something worthwhile its called “Early Access” I thought it might be cool, maybe it will update my banking info faster!

 

 I was wrong…..

 

Fifth Third Early Access allows you to request an advance on your next direct deposit.
     
Fifth Third Early Access Key Features:    
     
  • Real-time transaction where you can transfer cash into your associated checking account.
  • Automatic payoff of each outstanding Advance balance and associated finance charge. Payments will be automatically deducted from your associated checking account on your next qualifying direct deposit of $100 or more. If there is an outstanding balance on the 35th day after each Advance, we will automatically pay off the outstanding Advance balance from the associated checking account.
  • Associated finance charge with advance is 10% ($1 for every $10 borrowed) each time you make an advance, which equates to an 120% Annual Percentage Rate (APR).
  • Advances can be made in dollar increments up to your maximum credit limit. If your associated checking account is negative, an advance must bring your checking account to a positive status before you can access your full credit limit.
    
     
Wow those are lousy terms! 10% on every transition?!  This add claims that its only 120% APR. which might be true if you only got paid once a month. But most of us would need it in-between our weekly or twice monthly paychecks. So lets say you need this service 1 week before you get paid. So borrow some money from 5/3 and then 4 days later pay it back with your direct deposited paycheck. Lets do some math here. 10% interest *365/4 = 912.5% APR!! I wonder what the SEC will have to say about this. I think there is another financial tool you can use when your low on cash, oh yeah they are called credit cards!! Hey I can’t blame them for trying….. …

 

*Ohio recently passed a law limited Pay Day lenders to a MAX of 28%

    

Leave a Comment » | Banking | Permalink
Posted by fubar1383

Chase is Bush League

July 9, 2009

So I am pissed off at Chase, we are having a bit of a disagreement.  

  Here is my message to Chase:  

 

I was setting up direct deposit to make my credit card payment and I omitted a digit. I corrected the situation right away and sent you the money again with the correct banking information. Please remove the fee due to a simple typo.

 Thank you

 -JonBon

 

Chase Response:

 Dear Jon,

 

My name is Diana, we understand your concerns regarding the return check fee on your account.

 A returned check fee is charged whenever your bank does not honor the check that you gave us to pay on your account. This can occur for a number of reasons. Please contact your bank for details regarding your check.

 This fee was assessed to your account because your payment was returned to us unpaid by your financial institution. It is a valid fee and will remain on your account.

 Thank you,

Diana

 

JonBon’s Rebuttal:

 Diana

Like I said before I made a typo and entered the wrong number for my account number or routing number. Of course the payment was not honored by the bank, it was not my account. I was attempting to make payments electronically which I am sure for Chase is less expensive then processing a paper check every month. I realize that it is a valid charge, but I think it is unreasonable to charge $39 for a typeo. Please remove the charge.

-JonBon

 

Chase Response:

 Dear Jon,

 Thank you for providing me with the opportunity to assist you today, regarding the returned payment fee.

 We previously reviewed your account and explained why we could not make the adjustment you requested. Even though you have informed us that this was a typo, the typo was not a bank error. We regret that we are unable to take further action regarding the returned payment fee reflected on your current activity.

 At this point I realize they are not going to be nice, and that I am going to have to be a little more forceful.

 

So I contacted the BBB, BRING IT ON CHASE!

 

Mrs. Newton

 I am sorry to hear that you are unwilling to fulfill my request to refund the unreasonable charges. You have left me no choice but to file a complaint with the Better Business Bureau. The complaint number is 83**** and has been filed to the BBB of Metropolitan New York.

 Thank you for your time.

 Respectfully

 

-JonBon

 

More to come kids!!

4 Comments | Credit, Liabilities | Permalink
Posted by fubar1383