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Supplement I, Official Staff Interpretations, (c) (“The electronic re-presentment of a returned check is not covered by Regulation E because the transaction originated by check.
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If payday lenders make loans using the Alternative approach, the proposed regulation would not prevent people in these situations from taking out loans; they would be prevented from taking out many loans in a row, but if they are truly facing a short-term need and can quickly repay this restriction would not affect them.
Many lenders charge a returned item fee when a payment is returned for insufficient funds.
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Generally, the short seller does not earn interest on the short proceeds and cannot use or encumber the proceeds for another transaction.
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