Many Americans who cannot cover regular or emergency expenditures are also finding it harder to obtain traditional forms of credit to tackle unexpected expenses, such as an emergency car repair or medial need. But rather than ease this burden, the Consumer Financial Protection Bureau is proposing to take away viable short-term funding options.
Recent research by Novantas found the majority of overdrafts come from highly informed consumers who preferred to use it over other forms of credit. Their decisions are based on clear disclosures and personal experience with the service. The research uncovers insights important to informing the public policy discourse on the use and availability of overdraft services. Novantas found that many consumers who use overdraft see value in the service and use it strategically based on their financial situation.
Read the full article at American Banker’s BankThink…
And read the Novantas Report Understanding Consumer Choice: A Review of Consumer Overdraft Behaviors