Chronic overdrafters
Chronic overdrafters

Consumers who overdraft their checking account five times or more per year account for 93.4% of the overdraft fees banks collect, according to the FDIC.

Why don't they learn their lesson? Some people actually do this on purpose.

Many repeat overdrafters don't want to go to payday lenders, and are using overdraft protection as a line of credit instead. While banks are usually happy to oblige and collect fees, at the same time, overdrafters are viewed as credit risks that could stick the bank with potential losses.

"Overdrafters are a bit like addicts, and the banks want to take advantage of that and target those customers," said CEO Odysseas Papadimitriou. "There's a risk in taking them on, but it's a high risk, high return kind of situation -- and overall it's profitable."

Last updated May 11 2011: 3:56 PM ET

These 7 credit cards are the superheroes of the banking world, say industry experts, providing low fees and sane rates to people trying to build or repair their credit. More

Can't escape your bank's dirty tricks? We found 8 with zero ATM fees and free checking. More

Find Homes for sale
  • Property Type
  • Find a home in:
    New York | Atlanta | Chicago | Los Angeles
    Washington D.C | Houston | Philadelphia | More options
Most Popular

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.