Consumers Paid More Overdraft Fees: 5 Things to Know for the Week

Simon Zhen

Updated on Tue Jul 15, 2014

Bank of America debit card and checkbook

Consumers must enroll in debit coverage to allow overdrafts to occur on their accounts. And, more banks are addressing unfair practices that maximize the potential for overdraft incidents. But, overdraft fee revenue is rising for banks. Is financial regulation helping?

  • In 2012, overdraft fee revenue for banks rose 1.3 percent, from $31.6 billion in 2011 to $32 billion in 2012, according to a new report by Moebs Service, a research firm. The increase may come as a surprise, given that a 2010 legislation requires consumers to give consent to overdrafts.
  • Over the weekend, the central bank of Cyprus said that major depositors in the largest Cyprus bank will lose roughly 60 percent of their savings as part of the bailout plan that was agreed upon. In exchange, these depositors will receive shares in the bank, worth just 37.5 percent of their savings over 100,000 euros.
  • Financial education takes the spotlight for the month of April, which is designated as National Financial Literacy Month. Various financial institutions and non-profit organizations are holding promotional events, programs and initiatives to preach financial wellness. One program, offered by Money Management International, has a 30-step plan to help consumers improve their finances.
  • LearnVest, the personal financial management and wellness program, now gives users access to financial advisors from their iPhones. “Once you complete a short profile, you’ll be able to schedule a free 15-minute call with an expert that’s right for you,” LearnVest said in the app’s iTunes page.
  • On Friday, USAA will begin a full roll-out of its new voice recognition feature for its iPhone mobile banking application. With the feature, USAA customers can perform banking transactions using voice commands — similar to the iPhone’s Siri voice recognition capability.

Post a Comment