That revelation stems from a fresh Center for Responsible Lending (CRL) analysis. In its “Not Free: The Large Hidden Costs of Small-Dollar Loans Made Through Cash Advance Apps” report, the CRL examined transactions tied to five companies: Brigit, Cleo, Dave, EarnIn, and FloatMe. A nonprofit research and policy group, CRL examined the activity of regular app users. Per a news release, the CRL surmised it data revealed consumers who withdrew small loans from cash advance apps paid “triple-digit annual interest rates, experienced high levels of repeat re-borrowing, and incurred more bank overdraft fees after using the product.”
