The Consumer Financial Protection Bureau (CFPB) released an analysis saying that consumers who turn to online lenders for payday loans face hidden risks of costly banking fees and account closures, USA Today reported today. Half of the borrowers who got the high-interest loans online later were hit with an average of $185 in bank penalties for overdraft and non-sufficient funds fees when the lenders submitted one or more repayment requests, according to the CFPB. One third of the borrowers who racked up a bank penalty ultimately faced involuntary account closures, the report also found. Online lenders made repeated debit attempts on borrowers' accounts, running up additional bank fees for the consumers, even though the efforts typically failed to collect payments, the study said.
