Banks to collect record overdraft fees this year: report ($38.5 billion)

[The Straight Story]

Banks to collect record overdraft fees this year: report

BOSTON (MarketWatch) -- U.S. banks are positioned to reap a record $38.5 billion from customer overdraft fees this year, nearly double the figure reported for 2000, according to a published report.

The biggest chunk of the fees is coming from the most financially stretched consumers as banks increase charges on overdrafts and credit cards, the Financial Times reported.

Overdraft fees represented more than 75% of service fees charged on consumer deposits, according to the FT. The biggest banks -- such as Citigroup Inc. /quotes/comstock/13*!c/quotes/nls/c (C 3.94, +0.09, +2.34%) , Bank of America Corp. /quotes/comstock/13*!bac/quotes/nls/bac (BAC 16.58, +0.16, +0.97%) , J.P. Morgan & Co. /quotes/comstock/13*!jpm/quotes/nls/jpm (JPM 42.20, -0.16, -0.38%) and Wells Fargo & Co. /quotes/comstock/13*!wfc/quotes/nls/wfc (WFC 28.27, -0.49, -1.70%) -- are charging the highest overdraft fees.

The median bank overdraft fee has risen to $26 from $25 this year, the report said.

The story is stoking the backlash against Wall Street after some of the nation's largest banks required bailouts during the credit crisis. Banks and credit-card firms have been raising fees during the economic pullback to help shore up falling revenue.

The Obama administration has proposed to create a Consumer Financial Protection Agency, which could take a hard look at overdraft charges and other bank fees.

http://www.marketwatch.com/story/banks-set-to-pocket-record-overdraft-fees-report-2009-08-10

[anonymous171]

1. Overdraft "protection" is yet another banker scam. nt