The Consumer Financial Protection Bureau (CFPB) has released a study on bank overdraft fees. Most of these fees are incurred on transactions of $24 or less, and that more than half of consumers pay back negative balances within three days. It's not a bad business for the banks; they rake in about $30 billion a year with these fees. These fees are particularly advantageous for smaller banks as it amounts to 3-15% of their total revenue. Using one fairly reasonable assumption, the CFPB estimates that the customer is paying 17,000% interest on an annual basis; naturally the banks dispute that.
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