[StealMyDeal]

Just got bank statements in for a merchant who uses a local credit union. I've redacted most of it, but take note of the last two lines in the transaction history, which states that their Courtesy Pay product is not for use by payday lenders.

Did a little research online, and it looks like this is a growing trend among smaller banks and credit unions. They're actually marketing their "Courtesy pay" products, which are basically a form of overdraft protection, as a competitor to cash advances, claiming they are cheaper and more convenient. And they're using their power to turn it on/off at their discretion to shut out MCAs and similar products.

It'll be interesting to see how this plays out.

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[BB_Cooper]

Marketing ODP products as a line of credit equivalent was the whole reason Reg E came into existence.

Does it look like these small banks looking to generate fee income with these products, or is about attracting new deposit customers?