US banks made $38 billion off overdraft and insufficient funds fees last year — $38 billion!! — an average of $376 per household, according to bank consulting firm Bretton Woods. That’s up 10 percent from 2008 and 27 percent from 2005. After July 1 people will have to volunteer for the high-cost loans to cover insufficient funds.
The company figures this will also eliminate about $6 billion in short-term credit. Could this be a bonanza for payday loan places?