Consulting firms are telling banks to hone in on the financially precarious to sign back up for costly overdraft protection that will only further erode their bank account. Here are some quotes from their strategies:

“…20 to 29% of your members give you 90% of your NSF income. Target those top 29% and get them to opt in …”
“If they are in the top 29% of abusers, call them.”

“Target [so-called] “frequent fliers”…focus attention on these customers first.”

(The firm termed “frequent fliers” as those who don’t pay attention to account balances, live paycheck to paycheck, or intentionally overdraw their accounts.)

“Regulation E offers aggressive bank marketers opportunities to maintain or even increase revenues from their overdraft programs.”

“[a]fter all, this is your most profitable fee group.”

Studies have shown (PDF) that those who frequently overdraft are most likely to be lower-income, single, non-white renters.

Banks Target, Mislead Consumers As Overdraft Deadline Nears [Center For Responsible Lending]

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