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As Banks Lose Out On Overdraft Revenue, Do Consumers Win?

Thursday, June 6, 2013 - 7:54 AM
Banks are experiencing big declines in overdraft revenues, but is that really as good a bit of news for consumers as it seems?

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10
ShorebreakShorebreak2,367 posts since
Apr 6, 2010
Rep Points: 12,619
1. Thursday, June 6, 2013 - 10:14 AM
Overdraft fee is the most irrational fee that banks dreamed up with.  In the old days, we all could get a line -of-credit (mine was $3K) to protect us in case of overdraft (by accidental forgetfulness or errors).

Now the banks/credit unions used it as a tool for more income.  Oh, we are going to cover you in case of overdraft: we will honor your overdraft amount only with a slight fee (say $40).  What patronizing behavior and highway robbery!  Many consumers simply use overdraft as their way of borrowing more money and be charged with huge fees and interest. 

I think all consumers should say no to overdraft and starve the overdraft feature to death!
6
51hh51hh1,460 posts since
Jan 16, 2010
Rep Points: 6,348
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