Bankruptcy

Overdraft Profits Exceed 38 Billion

By mcbride

It is reported that for some banks, the windfall reaped from overdraft fees, which frequently exceed the amount being covered by the bank, are their only source of capital.  ?U.S. banks will collect a record $38.5 billion in overdraft fees this year, with nearly all the revenue paid by just 10% of customers, according to a research report released Monday.

The windfall is nearly double the $19.9 billion collected in 2000, as overdraft fees drift higher despite the recession, said Mike Moebs, chief executive of research company Moebs Services.?

Here is a link to the full article: http://money.cnn.com/2009/08/10/news/companies/bank_overdraft_fees_Moebs/?postversion=2009081016

Michael

Full post as published by Texas Lawyer Blog on August 11, 2009 (boomark / email).