High-Cost and Hidden from View: The $10 Billion Overdraft Loan Market
Published: May 26, 2005
This report quantifies the fees that people with checking accounts are now paying for high-cost, short-term overdraft loans. Many people are finding themselves with overdraft loans they never asked for, do not want, and cannot afford. Federal regulators have failed to protect these customers. The Center for Responsible Lending finds that borrowers are paying more than $10 billion per year for fee-based overdraft loans.