NEW YORK (CNNMoney.com) — U.S. banks will collect a record $38.5 billion in overdraft fees this year, with nearly all the revenue paid by just 10% of customers, according to a research report released Monday.

The windfall is nearly double the $19.9 billion collected in 2000, as overdraft fees drift higher despite the recession, said Mike Moebs, chief executive of research company Moebs Services.

“Overdrafts are the mother lode of all service-related charges, and they’re often the only source of capital,” Moebs said. “Still, we had never seen fees go higher in any recession until now.”

The national median overdraft fee rose to $26 from $25 in 2008, while larger Wall Street banks charge a median of $35, Moebs said.

Moebs Services collected data from 2,000 banks and credit unions, and the firm found that 44.5% reported a net overdraft revenue higher than their net income. Fee hikes have helped banks boost profit amid the recession, Moebs said.

“Most people paying these fees have a credit score below 590 or so,” Moebs said. “Beyond that, they’re a whole gamut of people: rich and poor, men and women.”

Government-mandated overdraft fee increases “are leading the charge,” Moebs said. For example, he said, a local U.S. post office decides to increase its overdraft fee to $35. Area retailers note the increase and in turn raise their own fees. Finally, banks follow suit.

Source:

http://money.cnn.com/2009/

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