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Consumers' Use of Overdraft Protection

16 Pages Posted: 28 Jan 2016  

Claire Greene

Federal Reserve Banks - Federal Reserve Bank of Boston

Mi Luo

Federal Reserve Banks - Federal Reserve Bank of Boston

Date Written: 2015-11-16

Abstract

In mid-2010, an amendment was passed to Regulation E, which implements the Electronic Fund Transfer Act, requiring financial institutions to ask consumers whether or not they want overdraft protection for automated teller machine (ATM) transactions and everyday purchases made with a debit card. This Research Data Report studies the short-term impact of this amendment by examining consumers' adoption of overdraft protection, the incidence of overdrawing at least once within a 12-month period, and the incidence of paying a fee for overdrawing, before and after the opt-in rule took effect.

JEL Classification: G21, G28

Suggested Citation

Greene, Claire and Luo, Mi, Consumers' Use of Overdraft Protection (2015-11-16). Research Data Reports Paper No. 15-8. Available at SSRN: https://ssrn.com/abstract=2723815

Claire Greene (Contact Author)

Federal Reserve Banks - Federal Reserve Bank of Boston ( email )

600 Atlantic Avenue
Boston, MA 02210
United States

Mi Luo

Federal Reserve Banks - Federal Reserve Bank of Boston ( email )

600 Atlantic Avenue
Boston, MA 02210
United States

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