Banks Pocketed $15 Billion in Overdraft Fees Last Year

By:
Chris Gaetano
Published Date:
Aug 7, 2017
Broke

A recent report from the Consumer Financial Protection Bureau said that penalties from overdraft fees gave banks $15 billion last year, according to CNN Money. The CFPB derived its figures based on mandated reports from banks with $1 billion or more in assets, which came to $11.41 billion, then estimated what smaller banks and credit unions made to bring the figure to the full $15 billion. This is 2.2 percent higher than last year's numbers. While this is rather much, CNN noted that around 2010 banks made $38.5 billion in overdraft fees, but actions from the Federal Reserve in the wake of the financial crisis made it so customers must explicitly agree to approve transactions when there are insufficient funds. However CFPC Director Robert Cordray said that the data indicates that, while a smaller proportion of revenue than before, overdraft fees disproportionately affect the poorest Americans. Despite concerns, though, he said the agency is not planning on drafting new rules regarding the fees. 

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