This is a bit of an exaggeration, but otherwise correct...

Alice has $100 in burrito debt at 0%, but misses one payment, which automatically reverts to a 30% interest rate, back-tracked to the start of the "loan".

She also receives a $7 late payment fee, which is equivalent to about 90% interest for the time covered.

Her bank will often re-order operations on a given day in order to maximize the fees charge (yes, this happens, yes, this is legal), so even if she had her paycheck arriving on the same, the operations will often be sequenced with largest debits first, followed by credits, so that the overdraft hits as early as possible, and the most possible number of failed payment fees can be extracted, followed by the credit, which is now greatly reduced

(I actually had this happen to me as a student once, five late payment fees because of re-ordering, which caused me to both never let this happen again, and change banks immediately for one which wasn't as predatory).

Burrito loans are like payday loans, but even more predatory... They are neither ethical, nor moral (usury is even covered in the old testament, for christian folk).

I believe reordering of transactions to maximize NSF fees was made illegal by the CFPB, but Trump recently rescinded the rule.

The overdraft related fees were also capped at $5 by the CFPB, where the previous average fee was $35. Trump rescinded this rule and he's either deleting or has deleted the Consumer Financial Protection Bureau.

It is exaggerated, particularly the 2 $30 fees: a $30 "failed payment" fee sounds like a bounced check, and doesn't really apply here, and there's been a general crackdown on overdraft protection fees.

But it doesn't need exaggeration! A missed payment accelerating the loan to 46% APY effective is already usury and bad enough!

The Trump regime has removed the rules preventing excessive bank fees. Prior to these rules, put in place by the Biden administration late last year, the average fee was $35.