More study needed
The CFPB report concludes that further analysis is needed to determine whether the agency needs to step in with additional consumer protections. The study notes that, according to the bureau’s calculations, overdraft fees accounted for over 60% of fee revenue attached to checking accounts in 2011.
That’s a big pot of money, and banks aren’t going to give it up easily. With overdraft revenue estimated to climb steadily until 2016, the CFPB will need to put some more muscle behind any new rules it promulgates, since the last batch didn’t dent bank coffers for very long. It seems like overdraft fees are a cash cow that the banks will make certain never gets slaughtered.
The article Bank Overdraft Fees Resist Taming originally appeared on Fool.com is written by Amanda Alix.
Fool contributor Amanda Alix has no position in any stocks mentioned. The Motley Fool recommends Wells Fargo. The Motley Fool owns shares of Bank of America, Citigroup, JPMorgan Chase, and Wells Fargo.
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