The US Consumer Financial Protection Bureau (CFPB) is launching an investigation into the impact of overdraft fees on bank customers. The agency plans to collect data from the largest US banks in an effort to determine if there are adjustments that could be made to the way that overdraft fees are charged and publicized.
The banks say that only a small number of customers pay the fees and that those that do should be more prudent. The Wall Street Journal notes:
The consumer agency [CPFB], however, said it is concerned some banks may be charging and calculating the fees in a way that is misleading or confusing for consumers. In addition, the agency is taking a second look at a 2008 Federal Deposit Insurance Corp. study that found 9% of checking-account customers bear about 84% of overdraft fees. The FDIC also found consumers who overdrew 20 or more times per year paid an average of $1,610 in overdraft fees annually. … Evidence suggests that overdraft programs disproportionately impact low-income and young consumers.
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