Great new report released on overdraft: The price of an overdraft increased to cover for lost revenue. Moebs says that overdraft fees increased three percent year over year. Credit unions increased their fees more than banks did. Thus, even though the raw counts of overdrafts declined, absolute revenue derived from
overdrafting increased. For consumers that overdrafted, usage was very high. In the last year, those accounts overdrafted seven times. This represents a cost of two hundred dollars and possibly more with some institutions.
Moneygram is adding to its footprint in Turkey. Moneygram says that it is partnering with DenizBank to offer money transfer services from their branches. That could be coinincidental to the humanitarian crisis in Syria that had led to a surge in border crossings. In two years, two million people have left Syria. Almost one in four have entered into Turkey. But, the new agreement may also be a very agile response to a sudden expansion of the demand for sending and receiving money. On the ground, reports say that well-off consumers are flying to Istanbul, whereas the poor are merely moving to refugee camps on the border.
Gretchen Morgensen makes new linkage between Wall Street and high-cost non-bank consumer installment lending. There is a great article out this week in the New York Times which reveals how cash from Deustche Bank has flowed into Cash Call. Deutsche Bank led an agreement to loan approximately $1 billion to the payday lender. Cash Call offers loans of as much as 340 percent. The relationship ended some time back. Later on, Cash Call re-partnered with a tribal lender to offer funding and servicing on loans. Morgensen spotted the contract when Cash Call filed a lawsuit against its former lenders.