Truth in Lending: 2.8.8.1 What Is an Overdraft Loan?
Overdraft loans714 are a form of disguised high-cost credit offered by banks and credit unions.715 These plans offer short-term credit at triple-digit rates.716 Overdraft loans can be accessed by writing checks as well as, in many cases, by withdrawing cash from an automated teller machine (ATM) or using a debit card at a point of sale.717