According to reporting by the New York Times, troubled bank Wells Fargo may have charged customers overdraft fees for certain closed bank accounts, despite notifying the customers that the accounts were closed and that no transactions would be processed after a given date.
Despite rules meant to rein in excessive overdraft fees charged by banks, according to information from the Federal Deposit Insurance Corporation (FDIC), overdraft fees are big business. According to a 2016 FDIC survey, approximately 600 banks included in the data collected $2.7 billion in overdraft fees in the first quarter of 2016 alone.
In 2010, financial institutions were ordered to obtain consent before customers could be charged overdraft fees for ATM and debit card transactions. Prior to that, customers who attempted to make a debit purchase or a withdrawal that exceeded the amount in their account could potentially have the transaction approved, but be charged an overdraft fee of up to $35 even if they had not authorized an overdraft on the account.