There’s a new predator making money off overdraft fees: Credit unions.
California’s largest state-chartered credit union, Golden 1, took $24 million in overdraft from their members, while spending $6 million a year for naming rights for an NBA stadium in Sacramento. | Rich Pedroncelli/AP PhotoAaron Klein is the Miriam K Carliner Chair and senior fellow in economic studies at the Brookings Institution.
Let’s be clear: Overdraft fees can be predatory. Every overdraft by definition turns money from someone who has run out of it into nearly pure profit for the bank or credit union that charged it because they get paid back immediately when the next deposit hits. Eighty percent of overdraft fees come from just 9 percent of account holders, highlighting that this product is targeted at people living paycheck to paycheck who run out of money from time to time.
for some of its members while taking over $10 million last year in overdraft and non-sufficient funds charges from its members.
Twelve other California credit unions lost money overall, despite overdraft revenue that was often quite high. Chief among them was the Police Credit Union of California, which charged their members $1.84 million in overdraft fees whileThe data does show some good news. Ten percent of California state-chartered credit unions report zero overdraft fees, and just under 20 percent report fees in the single digits of total net earnings.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Silent Night Trailer Previews New John Woo MovieThe first official Silent Night trailer is officially here, previewing the new John Woo movie, his first American theatrical film since 2002.
Read more »
Seattle Seahawks roll past New York Giants on Monday Night Football with dominant defensive displayThe Seattle Seahawks cruised past the New York Giants with a blowout 24-3 victory at MetLife Stadium on Monday.
Read more »
New York Giants' unsuccessful 'tush push' leaves two players injuredTwo New York Giants players were injured in a failed 'tush push' attempt against the Seattle Seahawks on Monday night.
Read more »
Cowboys great Troy Aikman jokes about Giants fans leaving game earlyThe Seattle Seahawks beat the New York Giants, 24-3, at MetLife Stadium on Monday.
Read more »
Field Gulls previews the Seahawks vs. Giants on ‘Monday Night Football’Watch Seahawks-Giants previews ahead of ‘Monday Night Football’ in New Jersey!
Read more »
The Game: New episode of ‘Lights Out’ podcast takes Miracle at Montclair to new depthsThe latest episode is now available on Apple iTunes, Spotify and Google Podcasts
Read more »