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, according to new research. The fees are nearly double those reported in 2000. The finding, by research company Moebs Services, is likely to increase public hostility and pressure on banks to increase credit availability. http://ftalphaville.ft.com/blog/2009/08/10/66141/overdraft-fees-hand-us-banks-38bn/ Pluck the goose as long as you can...
If you are a bank owner, will it be OK for people not to make their payment on time. How will you manage your books and capital ratios if the payments are unpredictable. Having said that, they really charge crazy fine for the late payment, I mean 25-35 easy.
In USa havent you done what we have done in the UK and take the banks to court and have them lose 3x over, with the courts saying these fees are illegal and all have to be refunded?? :eek:
banks cant make their payments becasue they are leveraged 40:1 and they get bailed out. customers of banks can't make their payment because they are leveraged like 2:1 or 5:1, and they get fucked at the drivethrough
âThis is the first time in our 22 -year history of collecting this data that we have seen OD fees increase during a recession,â said Mike Moebs, CEO of Moebs Services, whose firm collects and analyzes pricing trends for government agencies such as the Federal Reserve and General Accounting Office, and financial institution clients. Key results for 2009 include the following: 44.5 percent of all banks and credit unions have OD income greater than net income. Higher OD fees were led by Wall Street banks, which charged a median price of $35 per overdraft vs. all financial institutions, which charged a median price of $26 per overdraft. The South continued to lead in OD charges regionally, with a median charge per overdraft of $29.00 vs. $25.00 for the North, East and West regions. The US Postal Service is increasing its price for OD fees more than Wall Street banks â to $35 per incident. 45 percent of Wall Street banks tier OD prices, vs. 2 percent of Main Street banks and credit unions. The OD charges range from a first-time charge of $25 up to a $35 charge per incident. 54 percent of all financial institutions offered a formal OD program, down significantly from 69 percent in 2008. 86 percent of all financial institutions that offer OD services allow the consumer to opt-out at any time. Less than 20 percent of all financial institutions pay checks in the order from large to small, with the vast majority paying checks in the order of presentment to the financial institution. 35 percent of all financial institutions allow consumers to overdraw their accounts at an ATM or with a debit card, charging a median of $26 for this service. ----------------------------------------- OD fees set a record, ya think people would learn.