Much like a payday loan, Glinda explains that Marnie's bank charges a fee for every dollar amount advanced. If Marnie continues to take a payroll advance every month—extending that charge over 12 months—the annual percentage rate calculates to 120 percent.
The advance and fee will be deducted from Marnie's next direct-deposited paycheck. If that deposit isn't sufficient, however, the bank will take partial payments from all successive deposits until the outstanding amount is paid off.
Glinda says the problem is that Marnie—like so many people—falls into a recurring cycle of taking advances to pay off the previous advance taken. Her expert advice: Stay clear of payday loans!