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Who Has the Highest Overdraft Limits?
Created by m.moebs on 3/22/2022 10:03:45 AM

23 States have not changed limits on overdrafts in 24 years.
With compliance risk looming, is this lack of consumer concern smart?
Read how moving OD limits can reduce compliance risk, increase profits, and be consumer friendly.
Semper, Mike

OD Limits Move for the First Time in 24 Years

Lake Forest, IL (March 22, 2022) The economics of supply and demand are taught in high school. Overdraft supply is the limit set by each financial institution while demand is the OD price. 23 states have not changed their OD limits since 1998, or 23 years, according to Moebs $ervices survey of over 3,000 financial institutions (FIs) at yearend 2021.
“We have surveyed all depositories since 1983,” says Michael Moebs, Economist & CEO of Moebs $ervices, Inc., an economic research firm, “and the only financial service not changing is the limit on overdrafts.” Moebs continued, “the consumer could benefit with a lower OD price and all banks, credit unions, thrifts, and fintechs could benefit from higher net revenue if OD limits were raised. This is not unprecedented since at least one depository has a limit of $10,000 along with one of the lowest OD prices in the nation – less than Walmart and is more profitable than 90% of all financial institutions.” READ FULL ARTICLE

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