NEW YORK—Who is paying the majority of financial services “junk fees?”
A new report from Solo Funds suggests most of that money is coming from holders of subprime credit cards, which account for $11.5 billion in additional fees each year, according to an analysis by Fortune.
“These fees encompass the annual percentage rate, plus subscription fees, late fees, fast payment processing fees, application fees, monthly maintenance fees, new card fees, and ATM fees,” Fortune reporters.
Following the holders of subprime credit cards, the consumers payday loans ranked in the study as the second most costly option—roughly $6 billion in additional fees annually.
Fintech solutions, such as earned wage access and peer-to-peer lending, amounted to $1.3 billion in annual fees, Fortune said.
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