Published: July 30, 2013
In spite of regulatory changes in recent years, many banks and credit unions continue to charge abusive fees on debit cards and checking accounts. In “High-Cost Overdraft Practices,” CRL discusses these findings:
Taken together, these findings show that recent reforms have not gone far enough to stop abusive overdraft practices. This chapter reviews the impact of these fees on U.S. households, noting that communities of color, seniors, young adults, and military families have been hit particularly hard.
Some banks choose to simply decline debit and ATM card transactions that would overdraw an account - but other banks exploit them as an opportunity for profit. See how this abusive practice causes more than a third of overdraft fees.