BANKING AFFAIRS

Detailed explanation-1: -Pawnshops will offer payday loans with high finance charges to desperate borrowers. A stop-payment order is a request that a bank or other financial institution not cash a particular check. on your deposits. Overdraft protection is an automatic loan made to an account if the balance will not cover the checks written.

Detailed explanation-2: -This is due to interest and fees, which is what a lender charges you for the use of its money. It is also referred to as a finance charge. A finance charge is the dollar amount that the loan will cost you. Lenders generally charge what is known as simple interest.

Detailed explanation-3: -High-cost credit products are loans and lines of credit that may charge high rates of interest and/or various fees and charges that can be onerous for financially vulnerable consumers.

Detailed explanation-4: -A savings and loan association (S&L) is a financial institution typically owned and overseen by its customers or shareholders. Because of this “pool” structure, savings and loan associations are able to offer mortgages and other types of financial products to customers who might otherwise not have access to them.

Detailed explanation-5: -Personal loan from a bank or credit union Banks or credit unions typically offer the lowest annual percentage rates, or total cost of borrowing, for personal loans.