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Richard Cordray
Banks rake in overdraft fees on small debit card purchases, CFPB finds
Banks rake in overdraft fees on small debit card purchases, CFPB finds

The majority of debit card overdrafts are caused by small purchases, resulting in many consumers paying more for overdraft protection than they spent on the transactions that triggered it, according to a study released Thursday by the Consumer Financial Protection Bureau. The findings show bank overdraft coverage, which has come under tougher regulatory oversight in recent years, continues to be a problem for many consumers and might require additional regulation, bureau director Richard Cordray said. "Overdraft fees should not be 'gotchas' when people use their debit cards," he said. "We need to determine whether current overdraft practices are causing the...

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