Overdraft coverage could be costing you, Consumer Financial Protection Bureau says

WASHINGTON - A U.S. agency says consumers who opt for overdraft coverage on their checking accounts pay higher fees and are more likely to have their accounts closed than those who decline it.

A report by the Consumer Financial Protection Bureau released Tuesday says it's hard for consumers to anticipate and avoid overdraft charges. It found that the cost for overdraft coverage varies widely from one bank to the next.

Customers of some banks paid average charges of $298 annually while those at others paid $147.

The CFPB has been investigating overdraft fees, which are a major source of banks' revenue. The agency has said its examination could result in new rules.

Banks charge overdraft fees when customers try to spend more money than they have in an account.

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