Checking accounts still too confusing and expensive, study finds

Despite regulatory reform aimed at reining in checking account overdraft fees, the penalty is still a cash cow for banks — to the tune of about $31 billion a year. That’s down from $37 billion in 2007, but a new report from the Consumer Financial Protection Bureau makes clear the number ought to be far lower. Why?

Despite regulatory reform aimed at reining in checking account overdraft fees, the penalty is still a cash cow for banks — to the tune of about $31 billion a year. That’s down from $37 billion in 2007, but a new report from the Consumer Financial Protection Bureau makes clear the number ought to be far lower. Why?

(frankieleon)

The Consumer Financial Protection Bureau released a white paper today on the impact of overdraft and non-sufficient funds (NSF) fees on the average bank account holder.

(lizardface)

What’s more effective: consumer protections or consumer education that leads to sound individual decision-making? There is a place for both. But those who question whether financial education works would do well to consider the Consumer Financial Protection Bureau’s new report on bank overdraft fees, which in my opinion demonstrates that when individuals understand their choices, they will protect their pocketbook all on their own, thank you very much. Unfortunately, as the report also shows, individuals too often do not understand the choices.

What’s more effective: consumer protections or consumer education that leads to sound individual decision-making? There is a place for both. But those who question whether financial education works would do well to consider the Consumer Financial Protection Bureau’s new report on bank overdraft fees, which in my opinion demonstrates that when individuals understand their choices, they will protect their pocketbook all on their own, thank you very much. Unfortunately, as the report also shows, individuals too often do not understand the choices.