2014 The Year Ahead in Debt Collection Part 2

Overdraft Fees

Are overdraft fees a thing of the past?

Overdraft fees are bank charges to the consumer, if the bank choses to honor a check written by the consumer for which there is insufficient funds.

   This single fee generates an incredible $31 BILLION in revenue for banks.   In 2010, the Federal Reserve stopped banks from charging overdraft fees, unless consumers agreed for the program ahead of time with the debit and credit cards.

Even though there are these new rules on the books to "opt out" of the fees, banks have not been overly speedy in changing their ways.

“Consumer advocates would like to see overdraft fees regulated to limit the number of times fees can be applied, how the fees are calculated and to have fees related to the amount of the overdraft,” Professor Levitin said.

61%  of bank fees were from overdraft last year.   This is not an issue that banks are quick to give up!

Overdraft Fees can make the difference for some banks between being profitable, and not.

We are hearing clear indications that these will be under review again buy the Consumer Financial Protection Bureau.

As debt collection attorney's in Florida, it is our commitment to keep our clients in the know on current legislation that effects their ability to collect a debt, and the general direction of the industry going forward.