Report: Young adults pay $1 billion a year in overdraft fees
Young adults ages 18 to 24 pay more than $3 in fees for every $1 their account is overdrawn.
They are particularly susceptible to such charges because of their widespread use of debit cards for even small transactions, concludes a study issued today by the Center for Responsible Lending, a nonprofit group based in Durham.
“Abusive overdraft practices by banks are stripping funds from the checking accounts of young adults,” the report concludes. “Many students and young workers find themselves owing hundreds of dollars in fees before they even realize they have overdrawn their accounts.”
At least 100 colleges nationwide contribute to the problem by forming partnerships with banks, the study contends. READ MORE