During the latest quarter, consumer overdrafts declined 2.8% to seven overdrafts per checking account annually at financial institutions nationally, making it the lowest consumer usage of overdrafts since 1999, but overdraft revenue hit $31.3 billion annually due to higher overdraft fees, according to the latest quarterly study by Moebs Services.
“Overdraft volume decreased as consumers reacted to uncertain economic times, so America's financial institutions reacted by increasing price,” said Michael Moebs, economist and CEO at the research firm in Lake Bluff, Ill.
Financial institutions have raised the median price of overdraft fees by 3.4% since 2011, with credit unions leading the way, the report noted.
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