Overdraft Fees, Consumer Debt, and Bankruptcy
Do overdraft fees ever add up to such an extent that consumers have to consider filing for personal bankruptcy ? According to a recent article in The Washington Post , “the country’s largest banks have increased the amount they collect from consumers in overdraft fees . . . just as regulators are considering whether to issue rules that would rein in their use.” Are overdraft fees and related charges really such a big problem? How much do overdraft fees actually cost consumers? To better understand the harm that overdraft fees can cause, it is important to look at some of the recent research reported by the Consumer Financial Protection Bureau (CFPB) in the article in The Washington Post . Increase in Overdraft Fees Collected by Banks Do banks often unfairly charge consumers overdraft fees? According to the article, the CFPB has been looking into “how banks levy overdraft fees on customers who bounce checks or withdraw more than they have in their accounts using debit ...