August 10, 2009 /

$38 Billion From Overdraft Fees?

This is why we also need banking reform: US banks stand to collect a record $38.5bn in fees for customer overdrafts this year, with the bulk of the revenue coming from the most financially stretched consumers amid the deepest recession since the 1930s, according to research. The fees are nearly double those reported in 2000. […]

This is why we also need banking reform:

US banks stand to collect a record $38.5bn in fees for customer overdrafts this year, with the bulk of the revenue coming from the most financially stretched consumers amid the deepest recession since the 1930s, according to research. The fees are nearly double those reported in 2000.

The finding is likely to increase public hostility towards the financial sector, which has been under political pressure to ease the burden on consumers by increasing credit availability and lending more fairly after being bailed out by taxpayers.

It used to be if you over drafted your account then you paid a fee once per occurrence and that was it. Now a lot of banks charge per day, making it even harder to get out of the red. Even worse is the fact that with this sinister way to squeeze money out of customers, banks still needed us to bail them out. The whole thing is criminal.

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