In 2013, the FDIC and OCC issued guidance claiming that inadequate underwriting of deposit advance loans raised safety and soundness concerns. Banks quickly removed deposit advance from their small dollar credit offerings. Unless overdraft and deposit advance are perfect substitutes, the loss of...

We study consumer use of two short-term credit products offered by banks: overdraft and deposit advance. On average, consumers who use overdraft pay 13 percent of their monthly deposits to cover fees; consumers who use deposit advance pay less than 2 percent. Data averages show that fees grow...

Debt collection is an important part of the consumer credit ecosystem, but has received little attention in the economics literature. Regulations on collection practices can protect consumers, but may also lead to unintended consequences if the costs of better practices are passed on to...