A 2024 study from the Center for Responsible Lending found a 56 percent increase in overdrafts from users’ checking accounts after an initial advance, as companies tried to collect their money. “If you have insufficient funds in your bank account, [these companies] will attempt to collect repayment on multiple occasions, so you could end up receiving multiple overdraft fees as they attempt to claw back their payment,” Lucia Constantine, co-author of the study, told The Lever. The study also found that companies seeking tips from their users often set the default tip amount above $0 and claim the tips are “used to support other vulnerable customers or for charitable purposes.”
