Wells Fargo's direct deposit advance - a good way to stay broke

Many of us have our paychecks directly deposited to our banking account. Many of us run out of money before payday. Now Well Fargo has gotten into the payday loan business with the direct deposit advance, which allows customers to tap into their paycheck early, for a hefty fee. This offering, like tax refund advances, is really a loan; a very pricey loan.

To its credit, the bank's service agreement repeatedly states that "This is an expensive form of credit." In fact, you'll pay a finance charge of $2 for each $20 advanced, which it claims works out to an APR of 120%. However, the terms require repayment in 35 days. The way I think of APR, a vig of $2 on $20 for 35 days comes out to around 120% per month.