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If a deposit advance is not repaid by the due date, a(n)

a) Check cashing charge

b) Monthly surcharge

c) Fixed interest fee

d) Overdraft fee

User Enlil
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1 Answer

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Final answer:

An overdue deposit advance is typically followed by an overdraft fee charged by the bank, as opposed to a late payment fee or daily charges that might be associated with credit card payments.

Step-by-step explanation:

If a deposit advance is not repaid by the due date, the most common fee that is charged by financial institutions is a overdraft fee. This happens when you spend more money than you have in your account, resulting in a negative balance. Some banks may allow the transaction and charge the fee, whereas others may reject the transaction and ask for an alternative payment method. Each financial institution may have different policies and fees, such as a fixed late payment fee or a daily charge for late payments as found with some credit card companies; however, for a deposit advance specifically, an overdraft fee is more likely.

User Eun Woo Song
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