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Consumers Will Lose $65 Million to Banks this Black Friday

November 27, 2009

Hello KittyThe Center for Responsible Lending is warning consumers this Black Friday to watch out for overdraft loans.  Every day, consumers lose $65 in overdraft fees to banks.  As CRL explains:

At $24 billion per year in fees, unfair overdraft practices transfer funds from the accounts of hardworking Americans into the coffers of their banks and credit unions at the rate of $65 million every single day.

This means our nation’s financial institutions will collect some $1.8 billion during the 28-day holiday shopping season, through practices such as charging $34 for an average $17 debit card overdraft and manipulating the order in which they subtract debits from their customers’ accounts.

$65 million = 1.5 million turkey dinners

With the average turkey dinner priced at $43 this year, the money lost to overdraft fees could pay for 1.5 million turkey dinners — per day.

There is hope for reform though, and Congress is hotly debating this issue now.  You can tell Congress to regulate overdraft loans here or here.

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