well, my bank has this novel direct deposit advance option, where you can borrow $20 against your next deposit, with a 2 dollar fee. pretty sweet right? it is, up until payday, when i check my online statement and see this
well thats cool... my bank gives me them to when i use the debit card. but they charge me 30 bucks..... i think it stupid they will let me take money from an account that dont have any and then they charge me cause there stupid????
So I guess instead of a fee you could say you paid $2 interest on a $20 loan. That'* 10%. Assuming you ran low on funds mid week then the length of the loan would be 3 days. If I'm doing my math correctly that works out to an annual percentage rate of about 1,200%. Ouch!
I've never had any issues with TCF that I didn't cause.. And since he ain't in the Midwest, i doubt TCF will be an issue for him...
But, on topic, those little niceties are an easy way for the bank to keep a little of your money each month. They got some smart people coming up with those ideas, knowin that a lot of us will use them.