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Survey: Banks still charge high overdraft fees

Category: News and Notes- fhuff- 5:15 am/ August 19, 2011

Overdraft fees at banks continue to remain high despite Federal Reserve rules that require banks to get permission from customers to charge overdraft fees on debit card transactions. And although some banks have changed the order in which they process overdraft payments from checking accounts, most continued to pay the largest transactions first, according to a recent Consumer Federation of America (CFA) report.

“Bank overdraft fees at the largest banks remain steep, ranging from $33 to $37, and far exceed the typical $20 debit card overdraft,” said Jean Ann Fox, CFA’s director of financial services. “Some banks have hiked the number of overdraft fees consumers can rack up in a single day to as many as ten, costing consumers as much as $370 in just one day.”

The survey found that two-thirds of the largest banks add on additional fees if overdrafts are not repaid in a few days. Customers are required to pay overdrafts and fees immediate or get hit with additional fees. For customers who are already struggling to pay bills this can be financially devastating.

If you want to avoid getting hit with huge overdraft charges, you must let your bank know that you are opting out of this service.

Disclaimer:This content is not provided or commissioned by American Express. Opinions expressed here are author's alone, not those of American Express, and have not been reviewed, approved or otherwise endorsed by American Express. This site may be compensated through American Express Affiliate Program.

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