Navigating the world of finance can be tricky, especially with the various fees and risks associated with different products and services. In our new series, Small Print Made Simple, attorney & finance expert, Daynor, helps break down three important topics: junk fees charged by banks, the risks of storing funds in payment apps, and the predatory practices of payday loan agreements.
Junk Fees: No, They Shouldn’t Charge Them
When you contact your bank for information about your account, should you have to pay a fee? According to the CFPB, large banks and credit unions should provide information about your account without charging a fee. This is to prevent consumers from being paying their own money to access their own financial information. (Yes, this is a real opinion that they had to publish.) Daynor breaks it down in this video:
At Possible, we believe in transparency and fairness. That's why we don’t charge junk fees. Whether you need to request account information, or if you're late on a payment, we won't hit you with unnecessary fees.
Got Funds Payment Apps? Don’t Leave Them There
Ever left money sitting in a payment app after splitting the check with a friend? It might not be as safe as you think. The Consumer Financial Protection Bureau warns that funds stored in non-bank payment apps may not be insured by the Federal Deposit Insurance Corporation (FDIC). This means that if the company goes bankrupt, you might not get your money back quickly, or at all. Daynor explains their advice, without the jargon:
Daynor’s advice? To keep your money safe, it's best to transfer any balances from payment apps to a federally insured bank account. This way, your funds are protected, even if the bank fails.
This Loan Agreement is Sketchy—Daynor Explains Why
Payday loans are notorious for their high costs and predatory practices. Let's take a look at a typical payday loan agreement. You can see the finance charge, but it doesn't stop there. Some lenders have policies that automatically refinance your loan, buried in the fine print. Daynor explains how the legalese talks about this—and how you can avoid it trapping you in a cycle of debt with continuous fees.
Possible was founded to offer a better alternative to these harmful payday loans. We provide clear, fair loan terms without late fees, penalty fees, or renewal fees. Our goal is to help you borrow responsibly, build your credit*, and achieve financial stability.
That’s a wrap for now—for Small Print Made Simple, it’s just the beginning
Understanding the hidden costs and risks associated with different financial products can help you make better decisions for your financial health. At Possible, we're committed to providing transparent and fair financial services that empower you to take control of your finances.
*Credit scores are based on many factors and individual results may vary.
