Overdraft fees hit lower and middle income people the hardest. While hardworking people continue to slog it out during the pandemic, not one of the ten largest banks in the U.S. reduced or waived its overdraft fees.
Pernicious overdraft fees: According to the Center for Responsible Lending, the largest US banks took $11.7 billion in overdraft fees from the accounts of American consumers in 2019.
- The average amount an account is overdrawn is only $20 for three days, yet the average overdraft fee is $35.
- Banks often charge multiple overdraft fees per day, leading to compound fees that can add up to hundreds of dollars.
- Three-quarters of Americans support suspending overdraft fees during the COVID crisis.
- Wells Fargo yesterday announced it had accelerated the launch of a new no-overdraft-fee account. It costs $5 a month.
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