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. |
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| Fifth Third Early Access Key Features: |
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- 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.
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| 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% |
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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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