Newsroom
Pew: Consumers still confused by overdraft
June 30, 2014 – A 2013 study by The Pew Charitable Trusts shows consumers were still confused about overdraft fees and that a large percentage – though down some from 2012 – would rather be declined a transaction than hit by an overdraft fee.
Key findings of the study, announced late last week, include:
- 52 percent of overdrafters don't recall opting into coverage and were still charged a fee over the past year.
- 68 percent of overdrafters would rather be declined than pay a $35 overdraft fee. This is down from 75 percent in 2012.
- 80 percent say overdraft practices and fees should be more closely regulated.
- 50 percent of overdrafters said overdraft penalty products hurt consumers more than help them; 41 percent said they helped more than hurt.
Last year, overdrafters reported paying total fees averaging $69 for their most recent overdraft. The median amount reported was $35. One-fourth of overdrafters said they paid $90 or more in the last overdraft.
Pew reiterated recommendations lodged last year that CFPB require financial institutions to make overdraft programs safer and more transparent; and that it bar transaction reordering that maximizes overdraft fees and ensure that fees are reasonable and based on actual cost of providing the service.
CFPB, in releasing last year's report, said it found nothing in its report that suggests banks and credit unions should be precluded from offering the service. Overdraft is listed as being in "prerule stage" on CFPB's Spring 2014 regulatory agenda.
Share This
Related Resources
Add to Calendar 2024-05-03 14:00:00 2024-05-03 14:00:00 Plan Sponsor Attitudes Toward Retirement Plan Management and Fiduciary Outsourcing About the Webinar In January 2024, Pentegra conducted a survey of retirement plan sponsors and their perspectives on retirement plan management and fiduciary outsourcing. The survey measured how sponsors are using fiduciary outsourcing to help better manage their retirement plans. It also captured their perspectives on what outsourcing does to help them better position their plans and drive improved retirement plan outcomes. Key Takeaways: What is the full scope of your responsibilities as a plan sponsor? What is fiduciary outsourcing and how does it work? How does fiduciary outsourcing help reduce workloads and minimize risk? How can a credit union best position its plan to drive improved outcomes? Register Here Web NAFCU digital@nafcu.org America/New_York public
Plan Sponsor Attitudes Toward Retirement Plan Management and Fiduciary Outsourcing
preferred partner
Pentegra
Webinar
Ensuring Safety and Soundness with AI
Management, Consumer Lending, FinTech
preferred partner
Upstart
Blog Post
Turning Lemons into Lemonade: Capitalizing in a Post-Banking Crisis Era
Strategy
preferred partner
Allied Solutions
Blog Post
Add to Calendar 2024-05-02 14:00:00 2024-05-02 14:00:00 Mastering Resilience in Incident Response Plans About the Webinar An Incident Response (IR) plan is crucial for guiding credit unions through major incidents efficiently and effectively. However, many IR plans lack resilience, making them less adaptable to the evolving threat landscape. Join us for our webinar Mastering Resilience in Incident Response Plans where DefenseStorm cyber experts Elizabeth Houser and James Bruhl will delve into the importance of resiliency within cybersecurity IR plans. Don’t miss out on the opportunity to learn how to: Ensure IR plan accessibility so that all team members with assigned roles are prepared for effective incident response. Conduct efficient and regular reviews to ensure roles and responsibilities are current, tools are relevant, and compliance requirements are met. Implement and utilize tabletops to regularly test the effectiveness of your IR plan. Enhance preparedness, efficiency, and confidence among responders. View On-Demand Web NAFCU digital@nafcu.org America/New_York public
Mastering Resilience in Incident Response Plans
preferred partner
DefenseStorm
Webinar
Get daily updates.
Subscribe to NAFCU today.