Families in low-income households – especially families of color – are getting clobbered by banking fees, according to a recent story by CBS.
“Hispanic and Black households paid a total of $3.1 billion and $1.4 billion, respectively, in overdraft fees alone last year, according to a recent report from the Financial Health Network, a research and consulting firm. The report, which examined a range of financial fees, also found that Black Americans forked over $800 million last year on fees for checking account maintenance, money orders and check cashing, while Hispanic families spent $1.1 billion on those services.
“Such fees are driving many people of color away from banking altogether, some experts said in calling on federal regulators to limit fee amounts. Although households of all income ranges are subject to bank fees, “the data shows those least able to afford them are disproportionately shouldering the costs,” Financial Health Network CEO Jennifer Tescher said in a statement.”
Thanks to Bill Hardekopf at Cardrates.com for the tip on this story.
