when profit models go bad

Banks Cling To Overdraft Fees Because They Need Them To Survive

Banks Cling To Overdraft Fees Because They Need Them To Survive

Banks now make more on debit card overdraft fees than credit card penalties—they’ll rake in about $27 billion in 2009 alone, according to the New York Times. They obviously have zero incentive to curb the practice. In fact, one economist told the paper that “45 percent of the nation’s banks and credit unions collect more from overdraft services than they make in profits.”