Among people who incurred such fees last year, 52 percent did not realize they had agreed to the coverage, a study by
Customers who don't opt in for overdraft protection have their debit card transactions and ATM withdrawals declined if there isn't enough money in their account. That does not incur a fee.
The nationwide survey indicated that many consumers somehow unintentionally signed up for coverage. Pew's director of banking research,
"The form needs some work, and we're hoping the
The percentage of overdrafters who said they didn't believe they had consented to overdraft coverage was essentially unchanged from a Pew report released two years ago.
Pew also urged the financial protection bureau to mandate that overdraft penalties be "reasonable and proportional" to the bank's cost of covering the overdraft.
The median overdraft fee was about
Most transactions that triggered an overdraft were for
"That means consumers paid
The survey found that younger, lower income and nonwhite account holders -- as well as people who did not have a credit card -- were more likely to pay overdraft fees.
For the full Pew report, visit http://www.pewtrusts.org.
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