only 16 percent of bank customers were charged overdraft fees in 2011, the latest year for which the industry group has released data. But assuming 200 million bank customers, 16% represents 32 million people.  With $32 billion total in overdraft charges, this amounts to an average of $1,000 per person, quite significant for someone earning $20,000 or $30,000 per year.

 

The findings of an FDIC (Federal Deposit Insurance Corporation) study of bank automatic overdraft programs– also called courtesy overdraft or bounce protection–are no surprise to consumer advocates. For years, studies by consumer groups of automatic overdraft programs have shown them to be short-term loans that cost consumers billions in fees, while often denying them the ability to make an informed choice.

 

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