Wal-Mart banks, overdraft security, and customer rationality

Wal-Mart banks, overdraft security, and customer rationality

The Wall Street Journal has a story that is fascinating the leading page in regards to the operations of banking institutions found inside Wal-Mart— but not actually given that the reporters believe that it is interesting. The writers believe that it is interesting as exposing nefarious practices by these banks, which generate large overdraft protection fees and (it is implied) exploit consumers because they see it. In reality, the story that is real precisely the opposite–it is compelling proof of just exactly exactly how consumers utilize alternate credit services and products, and We suspect, compelling proof of the unintended consequences of federal government legislation of credit rating products. See upgrade below.

In a write-up that previous Comptroller of this Currency Robert Clarke and I also published into the autumn, we talked about at length just just how customers utilize bank overdraft security and lending that is payday your competition amongst the two items.