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I have never understood why an overdraft fee is so high.
The average debit transaction that incurs an overdraft fee is $24, according to a recent study by the Consumer Financial Protection Bureau (CFPB).
(An overdraft fee is a hefty $34, so you'd better deposit that babysitting money, pronto).
A similar fee is levied on hospital outpatient visits.
In 2014, the average U.S. overdraft fee was $30, according to a study by Moebs Services.
Most overdrafts are nothing more than a short-term loan at an absurdly high interest cost (the overdraft fee being the interest cost).
In 2006 these fees accounted for 74% of all bank service charges.But what's particularly galling to me about overdraft fees is that they disproportionately are levied on the poor.
Some observers have expressed surprise that a fee is being levied at all.
Overdraft fees were a big one.
Even with the changes, a recent study found that overdraft fees are still quite high.
Most of the overdraft fees are drawn from a small pool of consumers.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com