Overdraft Fees Fall on Customers Hit Hardest by Virus

Bank customers who have benefited from more lenient overdraft and other fees during the coronavirus pandemic may find themselves in a deeper financial hole when the charges eventually return.

Overdraft fees, which can range as high as $35 per transaction, typically fall on bank customers who have low account balances and uneven income. Consumer advocates fear that once banks stop providing breaks, the impact of mounting fees are likely to fall hardest on black and Latino borrowers who are suffering disproportionately from job losses due to coronavirus shutdowns.

“They really divert a great deal of money from the people that ...