According to a recent investigation by the Consumer Financial Protection Bureau there are four main causes for concern regarding overdraft practices:
1.) The Re-Ordering of Transactions - Overdraft fees are charged per transaction. By processing the largest transaction first more transactions are involved in the overdraft yielding more fees.
2.) Small Print - How detailed were overdraft services explained last time you opened a new bank account?
3.) Misleading Marketing Materials - By using phrases such as, "enjoy the peace of mind that overdraft protection offers" consumers are misled into thinking overdraft protection is a benign service.
4.) Impact on Low-Income and Young Consumers - Unfortunately these practices primarily victimize those that need their funds the most.