Banks Slowly Offer Alternatives to Overdraft Fees, a Bane of Struggling Spenders – The New York Times

“In less than a week, Keri Fitzpatrick, a self-described lunch lady, was dinged for $175 she definitely didn’t have.

A succession of automated payments over two days — for her phone, two credit cards and car insurance — pushed her TD Bank account into the red, socking her with $140 in overdraft fees. Then another unexplained fee surfaced on Friday, even though her paycheck had landed and she couldn’t find any other pending charges.

Ms. Fitzpatrick, 29, said she should’ve been paying closer attention — she assumed she had more money in her account. But she still couldn’t believe how quickly the charges piled up.

“It’s not like one fee comes out for one day. It is $35 for each of those,” said Ms. Fitzpatrick, of Peterborough, N.H., who oversees a middle school cafeteria. “It is just outrageous.” “

” . . . Overdraft fees have been a boon to banks. Revenue was $31.3 billion in 2020, according to Moebs Services, an economic research firm, down 10 percent from $34.6 billion in 2019. (Banks account for 78 percent of overdraft and insufficient fund fees, followed by credit unions at 20 percent and savings banks and fintechs at less than 2 percent.)

Overdraft fees peaked at $37.1 billion in 2009 and then began to decline after new regulations in 2010 required banks to receive consumers’ consent to opt in to overdraft services covering debit transactions and A.T.M. withdrawals.”

DL: This is a fee that should be banned entirely or severely restricted by the Federal Government, asap.For some banks, it is most of their profits.

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