Overdraft Protection Pays the Bills — For Banks

Overdraft protection plans allow you to squeak by without bouncing a check. However, they also cost a bundle. In fact, banks are getting an increasing portion of their revenue from overdraft protection fees. You might wonder who benefits more -- you or the bank. A recent report from the Center for Responsible Lending suggests that these loans hurt consumers, and that banks should provide greater disclosure when opening accounts with overdraft protection. [via Bankdeals]

Further reading:

• Center For Responsible Lending
• How Overdraft Protection Plans Work