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ProfessorGAC

(69,859 posts) Wed Oct 2, 2024, 01:33 PM Oct 2

The Checking Acoount Advance Commercials

Users of these banks (like Chime) can get an advance on the their next pay deposit. No interest, blah, blah, blah.
Does anyone understand how this works?
It seems like someone would have to do this over & over, in which case, I'm not sure how this provides any benefit.
Ok, I get that a one time thing, because your car, or fridge needed repair, or a sick pet...
But, one of the spots is about a guy needing gas money. That's not an emergency.or an unexpected event.
My biggest question is: what's in it for the bank? No interest, so doesn't create revenue. I'm thinking there are hidden conditions, with fees, if one does it too often, or exceeds some amount in a quarter.
I'm just very suspicious, because banks don't provide services that have no potential of return

5 replies

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The Checking Acoount Advance Commercials (Original Post) ProfessorGAC Oct 2 OP

Not sure, but I do know few, if any are FDIC-insured. NPR did a program segment on one that went belly-up hlthe2b Oct 2 #1

Do you have a link to such ads? PoindexterOglethorpe Oct 2 #2

Here's One ProfessorGAC Oct 2 #3

That small print at the end would fill legal requirements. PoindexterOglethorpe Oct 2 #4

These ads are targeted to people who are barely making it. Intractable Oct 2 #5

hlthe2b

(106,333 posts)

1. Not sure, but I do know few, if any are FDIC-insured. NPR did a program segment on one that went belly-up

Reply to ProfessorGAC (Original post)

Wed Oct 2, 2024, 01:36 PM

Oct 2

some time ago.

PoindexterOglethorpe

(26,727 posts)

2. Do you have a link to such ads?

Reply to ProfessorGAC (Original post)

Wed Oct 2, 2024, 01:37 PM

Oct 2

I know that (back when I had an actual TV) commercials for anything remotely financial always ended with a rapid-fire, almost too fast to understand, disclaimer about costs, fees, whatever.

They're just doing a better job of hiding those things.

ProfessorGAC

(69,859 posts)

3. Here's One

Reply to PoindexterOglethorpe (Reply #2)

Wed Oct 2, 2024, 01:47 PM

Oct 2

Chime is the TV ad I see the most.
https://ispot.tv/a/6DVL
And, there is no digitally sped up disclaimers. There is a tiny message at the bottom just before the commercial ends. But, it's there for such a short time, I can't stop the video to read it. Maybe on a laptop, I could but not on the phone.

PoindexterOglethorpe

(26,727 posts)

4. That small print at the end would fill legal requirements.

Reply to ProfessorGAC (Reply #3)

Wed Oct 2, 2024, 06:24 PM

Oct 2

It's been like this at least since the 1950s.

Intractable

(541 posts)

5. These ads are targeted to people who are barely making it.

Reply to ProfessorGAC (Original post)

Wed Oct 2, 2024, 08:14 PM

Oct 2

People living paycheck to paycheck.

Perhaps this is how the bank gets their business, and the biz of many poor folk would add up to profits.

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