Pew Comment: Data Collection on Overdraft Fees and Practices
- Safe Checking in the Electronic Age
- July 5, 2013
The Federal Financial Institutions Examination Council (FFIEC) recently proposed to categorize fee income that banks and credit unions receive for various services, including overdrafts, ATMs, and monthly maintenance fees.
Among the many benefits of this comprehensive collection of banking data is the impact it can have on regulators’ decisions regarding practices that might be harmful to consumers. Pew research shows that overdraft fees are detrimental to American families and these data should provide financial regulators with more information to understand the magnitude of this problem.
Pew is very encouraged by this extension of data collection and commends the FFIEC for requiring financial institutions to report their fee income more specifically. However, further data collection on the posting order practices implemented by financial institutions to increase their fee income would be additionally beneficial. To gain a clear picture of these practices, Pew urges the FFIEC to require that financial institutions report whether or not they reorder debit point-of-sale and ATM transactions from highest to lowest dollar amount.
Download the full letter to the FDIC
Download the full letter to the Federal Reserve
Download the full letter to the OCC