American Bankers Association Informative - Twenty Percent of Consumers Have Paid Overdraft Fees in Past Year
Do to all the complaints about late fees, NSF’s and/or Overdraft fees I though it would be a good thing to post some information on what is going on and how you can help yourself stay away from this problem.
Published: October 30, 2007
In a recent survey report, the American Bankers Association (ABA) reported that 20 percent of consumers have paid an overdraft fee in the past 12 months.
Of that 20 percent, 31 percent said they paid the fee once, 16 percent paid it twice, 18 percent paid it three times and 10 percent paid the fee four times.
According to the survey results, 79 percent of consumers said their bank covered the check or debit payment that resulted in an overdraft fee and 19 percent said their bank didn't cover the fee, while 2 percent said they did not know whether the fee was covered.
Of those consumers who paid an overdraft fee, 88 percent said they were glad their bank covered the payment, while 11 percent said they wished the bank had refused the payment. The ABA cited statistics released by the Federal Reserve that show approximately 18.3 million checks were “bounced” in 2003, which is 0.5 percent of the total check volume in the United States. The average value of returned checks was $756.
According to the ABA, the number of bounced checks has declined at an annual rate of 7.7 percent since the year 2000, which may reflect better money management by check writers or increased use of overdraft protection programs.
The report recommended consumers keep track of their transactions and balances regularly by signing up to have overdrafts linked to a line of credit, savings account or credit card.
This article is provided as a service of ACA's Creditors International Division.
Find out more at: http://www.acainternational.org/?cid=11294