Under pressure from consumer groups and regulators, Urban Trust Bank (UTB) of Lake Mary, Fla., has agreed to stop charging overdraft fees on its prepaid cards. Consumer advocates said the overdraft fees amounted to payday loans at rates exceeding state interest-rate caps.

Urban Trust's prepaid cards, sold at the outlets of payday lender CheckSmart, offered overdraft protection for a fee of 15 cents for every $1 in negative balance, a rate that exceeded the interest-rate caps in several states, including Arizona and Ohio.

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