Americans paid $17.5 billion in overdraft fees last year, up from $10.3 billion in 2005. Consumer advocates say banks should be held responsible for their abusive practices, such as “clearing high-dollar debits before subtracting smaller amounts, putting holds on deposits longer than necessary and failing to warn customers at the checkout or ATM if they have insufficient funds.” The American Bankers Association counters that consumers are the ones who should be smart enough to keep track of their available funds: “Only they know what checks they have written, automatic payments they have authorized and debit card transactions they have approved.”
Want more consumer news? Visit our parent organization, Consumer Reports, for the latest on scams, recalls, and other consumer issues.