Unauthorized Bank and Credit Union Overdraft Fees Threaten Financial Security of Older Americans

The new report "Shredded Security: Overdraft practices drain fees from older Americans," shows that overdrafts triggered by debit card use hit people at or approaching retirement age hard even though they use plastic less than younger debt-card holders. The cost – $1.65 in fees for every $1 advanced – reinforces CRL's previous research, which found that overdraft fees are disproportionate to the amount advanced to cover a purchase: Unauthorized overdrafts cost Americans $17.5 billion in fees for $15.8 billion advanced. The findings come as the Federal Reserve and federal policymakers are considering changes to rules governing overdraft loans.