More consumers have spent a large amount on overdraft protection charges in recent years, according to a recent analysis published on MarketWatch. The overdraft protection charges incurred by consumers in 2017 was the highest it has been since the Great Recession.

The researchers explored the prices for overdraft protection charges at over 3,800 financial institutions, including credit unions and banks. In 2017, consumers paid more than $34 billion in overdraft protection charges, according to the report.

That is the highest number since 2009, according to research that was completed by Moebs Services. In 2016, consumers paid 3 precent less in overdraft protection charges.

The researchers who completed the project were quick to share that this doesn’t mean that more people are overdrawing accounts in total. Instead, the researchers identified that credit unions have slowly increased their overdraft protection charges and customers of these institutions may not notice it until it’s too late. In the year 2000, the typical overdraft protection fee was $20, but the average overdraft protection charges at banks today is $30.

Credit unions are not too far behind, since the typical overdraft fee associated with credit unions nearly doubling during that same period, from $15 in 2000 to $29 in 2017.

Many consumers are not aware that they can opt out of overdraft protection charges completely. A 2010 law, for example, requires that consumers must be provided a notice about the institution’s overdraft policies, including alternatives and fees. This is the consumer’s official opportunity to opt out of allowing overdrafts at all.

Consumer advocates suggest that all consumers evaluate the benefits by opting out and allow cards to be declined at the register, rather than accumulating costly overdraft fees.

When a person does not realize that they have overdrafted their account, multiple charges during that time period can rack up excessive overdraft fees well into the hundreds of dollars. For consumers who are on tight budgets, the issues associated with overdraft protection charges are even more severe. The consumer financial consumer bureau, for example, identified that 8 percent of account holders pay approximately 75 percent of all overdraft fees.

One of the primary reasons that a lot of consumers avoid having a bank account at all is because of their anxiety about overdrawing an account. Banks have come under fire in recent years by consumer advocates for making opt-in agreements confusing and not presenting this information to consumers upfront in order to allow a consumer to opt out.

For example, research from the Pew Charitable Trust identifies that half of the consumers who had accounts go into overdraft status and accumulated fees, don’t ever remember signing an agreement to allow overdraft protection.

Opt-in agreements will apply only for ATM withdrawals or one debit card transaction, not for those transactions that are pre-authorized. These opt-in agreements also don’t cover any billing program that removes funds immediately out of a consumer’s bank account or cashed checks. Consumers can elect to receive an email alert or a mobile app in order to get a better perspective on where their account is at and to avoid problems and issues.

When someone has been subjected to unfair to undisclosed overdraft charges, they may choose to take legal action in the future after these charges have been assessed. If this applies to your situation, you can consider participating in a overdraft fees class action lawsuit investigation.

ATTORNEY ADVERTISING

The choice of a lawyer is an important decision and should not be based solely on advertisements.