(Last Word) Late payment fees and overdraft protection
A) are illegal under the Truth in Lending Act.
B) do not have to be reported under the provisions of the Truth in Savings Act.
C) effectively charge high rates of interest on loans to bank customers.
D) are unrelated to interest rates because they are fees.

Question

Quizplus · Accepted Answer

Late payment fees and overdraft protection effectively charge high rates of interest on loans to bank customers by adding a significant amount to the cost of borrowing money from the bank. This can result in consumers paying much more than they anticipated for the use of borrowed funds, even if the underlying interest rate is low.

(Last Word) Late Payment Fees and Overdraft Protection