More Banks than CUs Allow Debit Card Overdrafts
BOSTON -- Consumer protection groups are challenging the practice of allowing debit cardholders to use their cards to overdraw their checking accounts and the study found that, overall, this practice has increased.
The study found that more banks than credit unions allow their debit cardholders to overdraw their checking accounts with the cards. The study found that 72% of large banks let their debit cardholders overdraw their checking accounts with a debit card either at the point of sale or at the ATM. By contrast only 40% of credit unions and 50% of community banks surveyed did so.
According to the last survey, only 34% of debit card issuers, overall, allowed the practice. --email@example.com