Banks charged low-income Americans billions In overdraft fees

Source: Kelly Anne Smith, Forbes

Ninety-five percent of the overdraft fees consumers paid last year—$11.8 billion—were charged to people described by the 2021 FinHealth Spend Report's authors as financially vulnerable and financially coping. These households are defined by their struggle to spend, save, borrow and plan.

Forty-three percent of vulnerable households with checking accounts reported an average of 9.6 overdrafts in 2020. If a bank charged $24.38 in overdraft fees per transaction, that means vulnerable households paid nearly $234 in overdraft fees that year. 

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