NEW YORK—Hefty banking fees are hurting low-income households, especially families of color, according to one new report.
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, reported CBS News.
The report also found 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,” CBS stated.
As CUToday.info recently reported here, Ally Bank has announced it is eliminating its overdraft fees.