“The only thing that has changed in past seven months is that community banks have increased their overdraft fee in anticipation of a sharp drop in revenue, due to the upcoming loss of interchange fees that is mandated in the Durbin Amendment to the Frank-Dodd bill,” said Mike Moebs, economist and CEO of Moebs Services.
This most recent Moebs Study included a survey of 1,000,000 checking accounts nationwide. “The overall consumer opt-in rate for overdrafts on debit cards and ATMs is 75 percent and is rising,” pointed out Moebs. “The consumer views overdrafts as a safety net and not a penalty anymore. In order to profitably leverage this service, banks should consider lowering overdraft fees. Lower fees at community banks and credit unions reflect their better cost control.”
For more information: http://www.cnbc.com/id/41952091
