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Us Banks To Make $38bn In Fees This Year

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http://www.reuters.com/article/ousiv/idUSTRE5790YM20090810

U.S. banks to make $38 billion from overdraft fees: report

Mon Aug 10, 2009 3:43am EDT

(Reuters) - Banks in the United States are poised to make $38.5 billion in customer overdraft fees this year, the Financial Times said, citing research by Moebs Services.

A large portion of the revenue is likely to come from the most financially stretched consumers, according to the paper.

It said the research showed that many banks have increased charges on overdrafts and credit cards in order to boost profits.

The median bank overdraft fee rose this year by one dollar to $26, the paper said, citing the Moebs data.

"Banks are returning to a fee-driven model and overdraft fees are the mother lode," Mike Moebs, the company's founder was quoted by the paper as saying.

Overdraft fees accounted for more than 75 percent of service fees charged on customer deposits, the paper cited Moebs as saying.

Last year the U.S. Federal Reserve approved credit card rules to curb "unfair" practices such as surprise fees and interest rate hikes, and new mortgage lending rules are expected this summer. It is also mulling rules to give bank customers the chance to opt out of overdraft schemes that can involve fees.

At least this is a tax on the feckless rather than the prudent. $38bn. Wow. This means that next century, the US will be solvent. Maybe Buck Rogers was onto something.

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http://www.reuters.com/article/ousiv/idUSTRE5790YM20090810

U.S. banks to make $38 billion from overdraft fees: report

Mon Aug 10, 2009 3:43am EDT

At least this is a tax on the feckless rather than the prudent. $38bn. Wow. This means that next century, the US will be solvent. Maybe Buck Rogers was onto something.

Why does taking out an overdraft make you feckless?

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It's happening here too, My bank recently started charging £7.50 if I use my authorised overdraft during the month. as well as increasing the interest from 2.5 to 10.5%.

In process of changing bank at the mo.

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Why does taking out an overdraft make you feckless?

I'm making the assumption that you're probably using your overdraft facility because you've run your finances into the ground elsewhere and ( B ) All debt is bad.

Edited by AvidFan

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Hmm, well, this is the function of people not having enough common sense and lax regulation against usury and penury.

There is one way forward.... Just change the way we live our lives. Think along these lines:

bear-how-about-no-wj9.jpg

...to credit, to loans, to paying interest, to banks, and fiscal liberal democracy.

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