Banks, Overdraft Fees | featured news

Bank customers may complain about hefty overdraft fees, but they’re using the service more and paying the price. A new report from Moebs Services, a respected economic research firm, shows overdraft revenue at banks, credit unions and thrift institutions totaled $32 billion last year. That’s an increase of $400 million or 1.3 percent from 2011.

A potent mix of dense disclosures, clever accounting and naive customers made for a big bank payday, despite pushes for reform.

Wells Fargo is ending its free checking account. Bank of America is testing out options. Others are expected to follow suit. The good news for bank customers this summer is that new federal rules should cut down on unexpected overdraft fees.

Bank of America customers will soon be unable to spend more than they have in the accounts linked to their debit cards. It's a step that may become a common move ahead of new regulations limiting overdraft fees....

Bank customers who overdraw their checking accounts would get new protections from excessive penalties under legislation proposed Monday by the Senate banking committee chairman.