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Consumer Financial Protection Bureau

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Debit Card Overdrafts Come with Hefty Fees – Over 1,000% APR for Some

A new report by the Consumer Financial Protection Bureau has found the majority of debit card overdraft fees are incurred on transactions of $24 or less and that the majority of overdrafts are repaid within three days. Put in lending terms, if a consumer borrowed $24 for three days and paid the median overdraft fee of $34, such a loan would carry a 17,000 percent annual percentage rate (APR).

Isaac M. O'Bannon