(Source: Donna Gehrke-White Sun Sentinel, Fort Lauderdale, Fla. (MCT) — Fees charged by banks when consumers overdraw their bank accounts are starting to inch upwards after two years at the same level, according to a new survey released by the Consumer Federation of America.
Later this month, Fifth Third Bank will charge $37 per overdraft after a $25 fee is assessed for the first overdraft transaction, the federation reported. This replaces the bank’s policy of charging a $33 fee for the second, third, and fourth overdrafts in a twelve month period.
Meanwhile, U. S. Bank will charge a $15 fee for an overdraft transaction that is $15 or less, and $35 for any overdraft over that amount, according to the federation. Currently U.S. Bank charges $10 if the overdraft is $20 or less, and $33 per item if the overdraft is more than $20.
The CFA annual survey examined overdraft fees and practices at the nation’s fourteen largest banks. Five banks — Fifth Third, PNC, RBS Citizens, SunTrust, and U.S. Bank — charge tiered fees that vary depending on how many overdrafts are incurred in a twelve-month period.
The CFA survey found that almost two-thirds of banks charge second or per-day fees if consumers do not repay overdrafts immediately. SunTrust charges $36 on the seventh day an overdraft remains unpaid while RBS Citizens charges $6.99 per day on the fourth through thirteenth day an overdraft is owed. Fifth Third is dropping its sustained overdraft fee that adds $8 per day after an overdraft remains unpaid for three days.
Only three banks – Bank of America, Citibank, and HSBC – do not permit their customers to incur overdraft fees when using a debit card to make purchases. Citibank and HSBC will also prevent overdraft fees triggered at an ATM. The other 11 banks surveyed encourage their customers to opt-in to pay overdraft fees on very small purchases.
dgehrke@tribune.com, 954-356-4404 or @donnagehrke
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©2012 the Sun Sentinel (Fort Lauderdale, Fla.)
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Source: Donna Gehrke-White Sun Sentinel, Fort Lauderdale, Fla. (MCT)
