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%
This entry was posted on Monday, July 13th, 2009 at 7:26 pm and is filed under Banking. You can follow any responses to this entry through the RSS 2.0 feed.
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