Unfair Bank Overdrafts

Bank fees for overdrafts increased by 35% in two years.

SIGN 1

NO WARNING ON OVERDRAFT CHARGES

Many banks charge an overdraft fee for debit card transactions without giving customers a chance to cancel. Americans could save billion in overdraft fees if they were warned or denied at the checkout.

SIGN 2

DISPROPORTIONATE FEES

The average shortfall for a debit card transaction is $17, while the average overdraft fee is $34.

SIGN 3

SUBTRACTING LARGEST DEBITS FIRST

When balancing customer accounts each day, many banks subtract debits in order of largest to smallest dollar amount rather than in the order the transactions occurred. This can increase the number of overdraft fees the banks charge.

SIGN 4

HOLDING DEPOSITS LONGER THAN NECESSARY

Some banks hold customer deposits as long as legally allowed, even when no delay is necessary. This can increase the number of overdraft fees the bank can charge by keeping customers in the negative longer, even if they have deposited sufficient funds.