Banks and credit unions LOVE overdraft fees. Roughly 40% of the largest banks earn the majority of their profuits from NSF fees. For credit unions, it’s closer to 60%.
The CFPB produced a study of this topic. CFPB
A regulatory change that became effective in 2010 requires that you first have to opt in to a bank’s overdraft service before it can charge you an overdraft fee on a debit card purchase or ATM withdrawal. If a consumer doesn’t opt in to the service, which costs nothing until it kicks into action, their transaction can simply be refused because they don’t have enough money in the account.
Checking account consumers who paid 10 plus overdraft or nonsufficient fund (NSF) fees a year and opted into a bank’s overdraft/NSF checking account service paid as $450 more in bank/credit union fees than those consumers who acted the same but did not sign up for NSF/overdraft coverage. “Those consumers made up 9 percent of the 40 million accounts the CFPB studied at a small number of large banks, and they paid 79 percent of the banks’ total overdraft and NSF fees.”
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