Consumer Payment Card News

Big Banks Luv Killin Your Week2Week Budget w/“Hair-Trigger” Overdraft Fees

Big banks made $8.4 Billion in overdraft fee income in the first three quarters of 2016, up nearly 4% from the same period in 2015. Since the beginning of 2015, all banks greater than $1 Billion in assets have been required to report fee data quarterly.  dollar-213619_1280

Analysis by the U.S. PIRG Education Fund revealed the 10 banks that collected the most overdraft revenue through the first three quarters of 2016, in order, were: Chase Bank, Wells Fargo, Bank of America, TD Bank, U.S. Bank, PNC Bank, Suntrust Bank, Regions Bank, Branch Banking and Trust, and Woodforest National Bank.

Also, the 10 banks that collected the most overdraft/NSF revenue per account through the first three quarters of 2016, in order, were: Ameris Bank (based in Georgia), ACNB Bank (Pennsylvania), Armed Forces Bank (Kansas), Woodforest National Bank (Texas), BankPlus (Mississippi), First National Bank Texas – First Convenience Bank (Texas), Ocean Bank (Florida), Planters Bank (Mississippi),  Gate City Bank (North Dakota), and First Community Bank (Virginia).

All banks are subject to the CFPB’s rules but banks with more than $10 billion in assets are also supervised, or examined, directly by the CFPB, a new federal agency created for the sole purpose of protecting consumers in the financial marketplace. In the first three quarters of 2016, 94 banks under CFPB supervision that reported fee revenue collected $17.27 in overdraft revenue per account, compared to $21.36 per account for the 532 other banks that reported revenue.

A recent analysis by the CFPB released this December found that students, particularly those who use student-targeted bank accounts, are hit especially hard by overdraft fees. Within the population surveyed by the CFPB, one in ten consumers with student accounts incurred at least 10 overdrafts per year, paying on average $196 in overdraft fees.

Check out U.S.PIRG’s Overdraft Fee Tips




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