center for responsible lending

Most Who Opted In To Overdraft Protection Were Wrong About How It Worked

Most Who Opted In To Overdraft Protection Were Wrong About How It Worked

One of the results of the regulatory overhaul was that banks couldn’t automatically enroll people in “overdraft protection.” This kicked off a mammoth effort by banks to try to convince customers it was in their best interest to sign up for a program that would let them get charged $35 for overdrafting a $1 candy bar rather than go through the pain and humiliating of having a card declined. But a new survey by the Center for Responsible Lending found that most of the people who did opt in either had a misconception about how the overdraft protection, or simply wanted the ceaseless onslaught of pitches from their bank about it to stop. [More]