Over 80% of Consumers Have Not Had to Pay an Overdraft Fee in the Past Year

The American Bankers Association has reported that Consumers are becoming more responsible when it comes to their finances. In a recent press release the organization notes that consumers are paying fewer and fewer overdraft fees. This information was gathered in a recent survey conducted by the American Bankers Association.

The survey was designed to get a picture of current consumer trends and how they handle their financial responsibilities. The survey was conducted for the American Bankers Association by Ipsos-Reid on July 24th through the 26th. It surveyed 1,000 consumers according to the press release.

The survey revealed that in the past twelve months, only 20% of survey participants had paid a bank overdraft fee. Out of the fifth of the respondents that had paid a fee, only 17 percent of them had paid more than five overdraft fees in the past twelve months. Almost one third of those having to pay overdraft fees (31%) had only had to pay one. Another 44% of those that paid overdraft fees paid between two and four of these fees according to the press release.

For those that had to pay the overdraft fee, most of them had their check honored for the transaction that resulted in their account being over drawn. The actual number was 79% of those that paid the overdraft fee had their offending check honored. Nineteen percent said that their bank did not honor the check and assessed the overdraft fee as well.

According to the press release, out of the ones who had their check honored only 11 percent were frustrated that it been honored. The other 88 percent were pleased that their bank honored the check despite it resulting in the overdraft.

"Consumers appreciate banks paying their overdrafts," Ness Feddis said. Feddis is an ABA senior federal counsel and retail banking expert. They avoid the inconvenience, embarrassment and potential costs of having a payment or transaction rejected," continued Feddis.