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Banks and credit unions collected$23.7 billion in overdraft fees in 2008, up 35.4% from $17.5 billion in 2006., according to a study published by the Center For Responsible Lending. The most-common triggers of overdraft fees in 2008 were small debit card purchases ranging from $5 to $20, the report says. Banks and credit unions charged an average fee of $34 per overdraft, and the fee often was much higher than the debit card purchase, the study found. Debit cards triggered 44% of overdraft fees; ACH, 28%; checks, 27%; and account-maintenance fees, 1%, according to data the Center For Responsible Lending published in 2005-2006, Leslie Parrish, the center's senior researcher, tells ATM&Debit News, a CardLine sister publication. The higher fees underscore the widespread use of debit cards, Parrish says. "Today, nearly three-quarters of checking-account customers have a debit card, with active card users averaging 17 debit card transactions per month," the report notes. Debit cards "increased the number of overdraft events while the customer was unaware he had crossed the line." As a result, more than 50 million Americans overdrew their checking accounts at least once during the previous 12 months, and 27 million checking accountholders incurred five or more overdrafts during that period, the study report says. The Center For Responsible Lending is based in Durham, N.C.
