The Wenatchee World

Weather:

Weather

The latest extended forecast from The Weather Channel

Remove this weather forecast

Heat Advisory issued July 29 at 8:28AM PDT until July 29 at 8:00PM PDT by NWS

...HOT CONDITIONS EXPECTED AGAIN ON TODAY... ...HEAT ADVISORY IN EFFECT UNTIL 8 PM PDT THIS EVENING... THE NATIONAL WEATHER SERVICE IN SPOKANE HAS ISSUED A HEAT ADVISORY...WHICH IS IN EFFECT UNTIL 8 PM PDT THIS EVENING. * TEMPERATURES...HIGHS 99 TO 105. LOWS IN THE MID 60S. * TIMING...TEMPERATURES WILL BE WARMEST BETWEEN 1 PM AND 8 PM.

Today

Hi102° Hot

Tonight

Lo71° Mostly Clear

Wednesday

Hi100° Hot

Wednesday Night

Lo70° Mostly Clear

Thursday

Hi99° Hot

Thursday Night

Lo71° Mostly Clear

Friday

Hi95° Slight Chc Thunderstorms

Friday Night

Lo70° Slight Chc Thunderstorms

Saturday

Hi94° Mostly Sunny

Saturday Night

Lo71° Partly Cloudy

Overdraft coverage? Great … if you’re the bank

Send to Kindle
Print This

WASHINGTON — Overdraft protection often is a better deal for banks than for consumers, a new study by a federal watchdog agency reveals.

The report, being released today by the Consumer Financial Protection Bureau, found that consumers who sign up for banks’ optional overdraft coverage on debit card transactions and ATM withdrawals pay higher fees and are more likely to end up with involuntary account closures than those who decline.

Banks profit from consumers’ misfortune.

Fees for overdraft and nonsufficient funds accounted for more than 60 percent of banks’ total revenue from consumers’ checking accounts in 2011, according to the report.

Many financial institutions market their overdraft services as a protective measure that offers consumers greater peace of mind and security,” Richard Cordray, the bureau’s director, said Monday in a call with reporters.

They correctly note that consumers often benefit when overdraft transactions are paid, which helps avoid returned checks or declined transactions. But our study also raises questions. What is marketed as overdraft protection can in some instances put consumers at greater risk of harm.”

Cordray said the bureau plans to research overdraft programs further before taking any policy action.

Overdrafts occur when customers try to withdraw or spend more money than they have in their accounts. Banks can block the transaction and charge an “insufficient funds fee,” or allow the money to go through and charge an overdraft fee.

All comments are moderated before appearing. For more information, please read the approval guidelines. Questions? See our Disqus commenting FAQ or our full commenting policy.

Comments Help

A few important points:

  • You must have a Disqus account to comment (your Wenatchee World login and Disqus login are completely separate)
  • You must provide your first and last name
  • Your comment must be civil

For more information see our Disqus commenting FAQ or our full commenting policy