A new Report released yesterday by pewtrusts.org shows that customers are still befuddled about overdraft.
This is the Pew Charitable Trust’s second report on customer experiences with overdraft.
Some numbers from the study:
52% of overdrafters don’t recall opting into overdraft coverage, but were still charged a fee in the past year
68% of overdrafters would prefer to be declined rather than pay a $35 overdraft fee
80% of overdrafters say overdraft practices and fees should be more closely regulated
The average total fee paid by consumers during their last overdraft event was $69
To summarize, more than half of those using overdraft protection don’t recall opting into it, and two-thirds of those with overdraft protection would rather be declined than pay the fee. The price of an overdraft event – averaging $69, according to Pew — are high.
Is it any wonder why prepaid cards are booming? Prepaid cards will simply be declined if not enough funds are available on them, which is what 68% of those surveyed by Pew would prefer.
Icon Business Capital has many funding solutions that work with your cash flow and help eliminate overdrafts, we have options that will only collect payments when you are actually generating income, thus eliminating overdrafts and fees.