Overdraft

But can you talk a little bit about the history of Overdrafts as a product and how they transformed from a courtesy from your local small town community bank to, in many cases, a huge profit center?

Among smaller, mid-sized banks today, overdraft generally, and credit unions.

I want to be very clear, credit unions are in some ways way deeper into overdraft, some of them, than banks.

Right.

because overdraft is so incredibly expensive, $35 generally is the fee, has nothing to do with the cost for the bank to provide the credit, over sometimes a couple hours, sometimes a couple days, once you start running the, depends on the size of the overdraft, But you can get APRs on overdrafts from a couple hundred percent to a couple billion percent, right? The proverbial $2 cup of coffee overdraft that gets repaid in six hours.

Overdrafts almost never lose money for banks, right? Some payday lenders do default.

They give bad paper checks.

There's no money in the account when they come.