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1st Quarter Overdraft Fees Top $1.1 Billion at Big 3 US Banks

Published by: Frank Galvano on 27th May 2015 | View all blogs by Frank Galvano

1st Quarter Overdraft Fees Top $1.1 Billion at Big 3 US Banks

 JP Morgan Chase, Bank of America, and Wells Fargo took in a combined $1.1 billion in overdraft fees in the first quarter, according to a report from CNN. Of course, that accounts for nearly half of the $2.5 billion brought in by the 600 US banking firms required to reveal income from overdraft charges. Overdraft fees are charged to a bank's customer when an automatic payment goes through or a check on the account clears, but also when a customer pulls money from an ATM and their account balance dips below $0. The latter can only occur if the customer opts in to allow ATM withdrawls to exceed available balance, otherwise the ATM wouldn't disperse cash if the amount exceeds the balance. The Consumer Financial Protection Bureau is looking into overdraft fees, and is particularly curious about instances when customers are charged multiple overdraft fees in a day. 2015 is the first year that banks are required to disclose overdraft fee information.

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