Title page
Contents
1. Introduction 4
2. Data 9
3. Consumers' experiences with overdraft and NSF fees 12
3.1. Overdraft fees 12
3.2. NSF fees 15
3.3. Overlap in overdraft and NSF fees 17
3.4. Combining overdraft and NSF fees 20
4. Overdraft and NSF fees by socio-economic and demographic characteristics 23
5. Consumer credit and debt by experience with overdraft and NSF fees 27
5.1. Credit scores 27
5.2. Credit cards and credit availability 30
5.3. Home, auto, and student loans 34
5.4. Applying for and obtaining credit 36
5.5. Use of alternative credit 37
5.6. Delinquent debt 38
6. Financial strain and well-being by experience with overdraft and NSF fees 42
6.1. Account balances and saving behavior 42
6.2. Difficulty paying bills and managing an income shock 44
7. Conclusion 49
8. References 51
APPENDIX A: SUPPLEMENTAL TABLES AND FIGURES FOR THREE OVERDRAFT/NSF (COMBINED) FEE GROUPS 54
APPENDIX B: TABLES AND FIGURES FOR THE FOUR OVERDRAFT FEE GROUPS 59
APPENDIX C: TABLES AND FIGURES FOR THE THREE NSF FEE GROUPS 73
APPENDIX D: CHARACTISTICS OF FULL MAKING ENDS MEET SAMPLE 87
TABLE 1. OVERDRAFT AND NSF FEE GROUP BY SOCIO-ECONOMIC AND DEMOGRAPHIC CHARACTERISTICS 24
TABLE 2. CREDIT SCORE PROFILES BY NUMBER OF OVERDRAFT AND NSF FEES IN THE PAST YEAR 28
TABLE 3. CREDIT CARD OWNERSHIP AND CREDIT AVAILABILITY BY NUMBER OF OVERDRAFT AND NSF FEES IN THE PAST YEAR 31
TABLE 4. PERCENT OF CONSUMERS WITH A MORTGAGE, AUTO LOAN, AND STUDENT LOAN BY NUMBER OF OVERDRAFT AND NSF FEES IN THE PAST YEAR 35
TABLE 5. CREDIT APPLICATIONS BY NUMBER OF OVERDRAFT AND NSF FEES IN THE PAST YEAR 36
TABLE 6. PERCENT OF CONSUMERS WITH PAST DUE AND COLLECTIONS DEBT BY NUMBER OF OVERDRAFT AND NSF FEES IN THE PAST YEAR 39
TABLE 7. ACCOUNT OWNERSHIP, BALANCES, AND SAVING BEHAVIOR BY NUMBER OF OVERDRAFT AND NSF FEES IN THE PAST YEAR 43
TABLE 8. SOCIO-ECONOMIC AND DEMOGRAPHIC CHARACTERISTICS BY OVERDRAFT AND NSF FEE GROUP 54
TABLE 9. OVERDRAFT/NSF FEE GROUP FOR CONSUMERS WITH A MORTGAGE, AUTO LOAN, AND STUDENT LOAN 58
TABLE 10. OVERDRAFT FEE GROUPS BY SOCIO-ECONOMIC AND DEMOGRAPHIC CHARACTERISTICS 59
TABLE 11. SOCIO-ECONOMIC AND DEMOGRAPHIC CHARACTERISTICS BY OVERDRAFT FEE GROUP 60
TABLE 12. CREDIT SCORE PROFILES BY NUMBER OF OVERDRAFT FEES IN THE PAST YEAR 62
TABLE 13. CREDIT CARD OWNERSHIP AND CREDIT AVAILABILITY BY NUMBER OF OVERDRAFT FEES CHARGED IN THE PAST YEAR 64
TABLE 14. PERCENT OF CONSUMERS IN EACH OVERDRAFT FEE GROUP AMONG CONSUMERS WITH AND WITHOUT A MORTGAGE, AUTO LOAN, AND STUDENT LOAN 66
TABLE 15. CREDIT APPLICATIONS BY NUMBER OF OVERDRAFT FEES CHARGED IN THE PAST YEAR 67
TABLE 16. PERCENT OF CONSUMERS WITH PAST DUE AND COLLECTIONS DEBT BY NUMBER OF OVERDRAFT FEES IN THE PAST YEAR 68
TABLE 17. ACCOUNT OWNERSHIP, BALANCES, AND SAVING BEHAVIOR BY NUMBER OF OVERDRAFT FEES CHARGED IN THE PAST YEAR 70
TABLE 18. NSF FEE GROUPS BY SOCIO-ECONOMIC AND DEMOGRAPHIC CHARACTERISTICS 73
TABLE 19. SOCIO-ECONOMIC AND DEMOGRAPHIC CHARACTERISTICS BY NSF FEE GROUP 74
TABLE 20. CREDIT SCORE PROFILES BY NUMBER OF NSF FEES IN THE PAST YEAR 76
TABLE 21. CREDIT CARD OWNERSHIP AND CREDIT AVAILABILITY BY NUMBER OF NSF FEES CHARGED IN THE PAST YEAR 78
TABLE 22. PERCENT OF CONSUMERS IN EACH NSF FEE GROUP AMONG CONSUMERS WITH AND WITHOUT A MORTGAGE, AUTO LOAN, AND STUDENT LOAN 80
TABLE 23. CREDIT APPLICATIONS BY NUMBER OF NSF FEES CHARGED IN THE PAST YEAR 81
TABLE 24. PERCENT OF CONSUMERS WITH PAST DUE AND COLLECTIONS DEBT BY NUMBER OF NSF FEES IN THE PAST YEAR 81
TABLE 25. ACCOUNT OWNERSHIP, BALANCES, AND SAVING BEHAVIOR BY NUMBER OF OVERDRAFT AND NSF FEES CHARGED IN THE PAST YEAR 84
TABLE 26. SOCIO-ECONOMIC AND DEMOGRAPHIC CHARACTERISTICS, FULL MEM SAMPLE 87
TABLE 27. CREDIT SCORE AND CREDIT CARD CHARACTERISTICS, FULL MEM SAMPLE 89
TABLE 28. DEBT AND CREDIT APPLICATIONS AND USE, FULL MEM SAMPLE 90
TABLE 29. ACCOUNT OWNERSHIP, BALANCES, AND SAVING BEHAVIOR, FULL MEM SAMPLE 91
TABLE 30. FINANCIAL STRAIN AND WELL-BEING, FULL MEM SAMPLE 91
FIGURE 1. PERCENT OF CONSUMERS CHARGED OVERDRAFT FEES IN THE PAST YEAR 13
FIGURE 2. CONSUMER EXPECTATIONS FOR MOST RECENT OVERDRAFT, BY NUMBER OF OVERDRAFT FEES IN THE PAST YEAR 15
FIGURE 3. PERCENT OF CONSUMERS CHARGED NSF FEES IN THE PAST YEAR 16
FIGURE 4. CONSUMER EXPECTATIONS FOR MOST RECENT NSF FEE, BY NUMBER OF NSF FEES IN THE PAST YEAR 17
FIGURE 5. PERCENT OF CONSUMERS CHARGED AN OVERDRAFT FEE, BY NUMBER OF NSF FEES IN THE PAST YEAR 18
FIGURE 6. PERCENT OF CONSUMERS CHARGED AN NSF FEE, BY NUMBER OF OVERDRAFT FEES IN THE PAST YEAR 19
FIGURE 7. PERCENT OF CONSUMERS IN THE NO, OCCASIONAL, AND FREQUENT OVERDRAFT/NSF FEE GROUPS 21
FIGURE 8. AVERAGE CREDIT SCORE OVER TIME BY NUMBER OF OVERDRAFT AND NSF FEES IN THE PAST YEAR 29
FIGURE 9. PERCENT OF CONSUMERS WITH A SUBPRIME CREDIT SCORE OVER TIME BY NUMBER OF OVERDRAFT AND NSF FEES IN THE PAST YEAR 30
FIGURE 10. PERCENT OF CONSUMERS WITH NO CREDIT AVAILABLE ON A CREDIT CARD OVER TIME BY NUMBER OF OVERDRAFT AND NSF FEES IN THE PAST YEAR 32
FIGURE 11. PERCENT OF CREDIT CARD HOLDERS WITH AN UNPAID BALANCE AFTER MAKING THE LAST PAYMENT BY NUMBER OF OVERDRAFT AND NSF FEES IN THE PAST YEAR 34
FIGURE 12. PERCENT OF CONSUMERS WITH A PAYDAY, AUTO TITLE, OR PAWN LOAN BY NUMBER OF OVERDRAFT AND NSF FEES IN THE PAST YEAR 38
FIGURE 13. PERCENT OF CONSUMERS WITH DEBT 60 OR MORE DAYS PAST DUE OVER TIME BY NUMBER OF OVERDRAFT AND NSF FEES IN THE PAST YEAR 40
FIGURE 14. PERCENT OF CONSUMERS WITH DEBT IN COLLECTIONS OVER TIME BY NUMBER OF OVERDRAFT AND NSF FEES IN THE PAST YEAR 41
FIGURE 15. HOUSEHOLD DIFFICULTY PAYING BILLS IN THE PAST YEAR BY NUMBER OF OVERDRAFT AND NSF FEES IN THE PAST YEAR 45
FIGURE 16. LENGTH OF TIME HOUSEHOLD COULD COVER EXPENSES IF LOST MAIN INCOME SOURCE BY NUMBER OF OVERDRAFT AND NSF FEES IN THE PAST YEAR 46
FIGURE 17. FINANCIAL WELL-BEING AND PERCENT REPORTING FINANCES CONTROL THEIR LIFE BY NUMBER OF OVERDRAFT AND NSF FEES IN THE PAST YEAR 48
FIGURE 18. HOUSEHOLD INCOME AND THE LIKELIHOOD OF OVERDRAFT INCIDENCE 56
FIGURE 19. HOUSEHOLD INCOME AND THE LIKELIHOOD OF NSF INCIDENCE 56
FIGURE 20. CONSUMER AGE AND THE LIKELIHOOD OF OVERDRAFT INCIDENCE 57
FIGURE 21. CONSUMER AGE AND THE LIKELIHOOD OF NSF INCIDENCE 57
FIGURE 22. AVERAGE CREDIT SCORE OVER TIME BY NUMBER OF OVERDRAFT FEES IN THE PAST YEAR 63
FIGURE 23. PERCENT OF CONSUMERS WITH A SUBPRIME CREDIT SCORE OVER TIME, BY NUMBER OF OVERDRAFT FEES 63
FIGURE 24. PERCENT OF CONSUMERS WITH NO CREDIT AVAILABLE ON A CREDIT CARD OVER TIME, BY NUMBER OF OVERDRAFT FEES 65
FIGURE 25. PERCENT OF CREDIT CARD HOLDERS WITH AN UNPAID BALANCE AFTER MAKING THE LAST PAYMENT, BY NUMBER OF OVERDRAFT FEES IN THE PAST YEAR 65
FIGURE 26. PERCENT OF CONSUMERS WITH A MORTGAGE, AUTO LOAN, AND STUDENT LOANS, BY NUMBER OF OVERDRAFT FEES IN THE PAST YEAR 66
FIGURE 27. PERCENT OF CONSUMERS WITH A PAYDAY, AUTO TITLE, OR PAWN LOAN BY NUMBER OF OVERDRAFT FEES IN THE PAST YEAR 67
FIGURE 28. PERCENT OF CONSUMERS WITH DEBT 60 OR MORE DAYS PAST DUE OVER TIME BY NUMBER OF OVERDRAFT FEES IN THE PAST YEAR 68
FIGURE 29. PERCENT OF CONSUMERS WITH DEBT IN COLLECTIONS OVER TIME BY NUMBER OF OVERDRAFT FEES IN THE PAST YEAR 69
FIGURE 30/FIGURE 31. HOUSEHOLD DIFFICULT PAYING BILLS, BY NUMBER OF OVERDRAFT FEES IN THE PAST YEAR 71
FIGURE 31/FIGURE 32. LENGTH OF TIME HOUSEHOLD COULD COVER EXPENSES IF LOST MAIN INCOME SOURCE, BY NUMBER OF OVERDRAFT FEES 71
FIGURE 32/FIGURE 33. FINANCIAL WELLBEING AND THE PERCENT OF CONSUMERS REPORTING FINANCES CONTROL THEIR LIFE, BY NUMBER OF OVERDRAFT FEES 72
FIGURE 33/FIGURE 34. AVERAGE CREDIT SCORE OVER TIME BY NUMBER OF NSF FEES IN THE PAST YEAR 77
FIGURE 34/FIGURE 35. PERCENT OF CONSUMERS WITH A SUBPRIME CREDIT SCORE OVER TIME, BY NUMBER OF NSF FEES 77
FIGURE 35/FIGURE 36. PERCENT OF CONSUMERS WITH NO CREDIT AVAILABLE ON A CREDIT CARD OVER TIME, BY NUMBER OF NSF FEES 79
FIGURE 36/FIGURE 37. PERCENT OF CREDIT CARD HOLDERS WITH AN UNPAID BALANCE AFTER MAKING THE LAST PAYMENT, BY NUMBER OF NSF FEES IN THE PAST YEAR 79
FIGURE 37/FIGURE 38. PERCENT OF CONSUMERS WITH A MORTGAGE, AUTO LOAN, AND STUDENT LOANS, BY NUMBER OF NSF FEES IN THE PAST YEAR 80
FIGURE 38/FIGURE 39. PERCENT OF CONSUMERS WITH A PAYDAY, AUTO TITLE, OR PAWN LOAN BY NUMBER OF NSF FEES IN THE PAST YEAR 82
FIGURE 39/FIGURE 40. PERCENT OF CONSUMERS WITH DEBT 60 OR MORE DAYS PAST DUE OVER TIME BY NUMBER OF NSF FEES IN THE PAST YEAR 83
FIGURE 40/FIGURE 41. PERCENT OF CONSUMERS WITH DEBT IN COLLECTIONS OVER TIME BY NUMBER OF NSF FEES IN THE PAST YEAR 83
FIGURE 41/FIGURE 42. HOUSEHOLD DIFFICULT PAYING BILLS, BY NUMBER OF NSF FEES IN THE PAST YEAR 85
FIGURE 42/FIGURE 43. LENGTH OF TIME HOUSEHOLD COULD COVER EXPENSES IF LOST MAIN INCOME SOURCE, BY NUMBER OF NSF FEES IN THE PAST YEAR 85
FIGURE 43/FIGURE 44. FINANCIAL WELLBEING AND THE PERCENT OF CONSUMERS REPORTING FINANCES CONTROL THEIR LIFE, BY NUMBER OF NSF FEES IN THE PAST YEAR 86