Have you – or others you know – been charged an overdraft fee on your checking account? Is it unclear what the costs and benefits of overdraft systems are? Or what are the alternatives? Well, the Consumer Financial Protection Bureau (CFPB) wants to hear from you.
The CFPB has launched an inquiry into checking account overdraft programs to determine how these practices are impacting consumers. As part of this inquiry, the CFPB is seeking comments from the public about overdraft practices (their deadline is April 30th.)
The typical overdraft fee averages between $30 and $35 and has risen by about 17 percent over the last five years. According to Moebs Services, a research company that has conducted studies for both the government and some banks, banks earned nearly $30 billion dollars from these fees last year, and have pushed up charges to improve that haul. This means particular trouble for the 10 percent of customers, mainly low income, who pay close to 90 percent of these fees.
TELL THE CFPB YOUR CONCERNS ABOUT OVERDRAFT FEES.
We also would like to hear your concerns. So after you have shared your concerns with the CFPB, please send them to us at info@ourfinancialsecurity.org.
Banks have made huge profits from overdraft fees. Between confusing policies, misleading sales offers, and reordering transactions to maximize fees, they squeeze as much money as possible from consumers. Now we have a chance to change these practices, and sharing your comments will help.
Please forward this e-mail to family and friends so they too can share their concerns and experiences with overdraft fees.