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Tags: bank | overdrafts | credit scores | race income | black | minorities | poor

Study: Credit Scores Better Predictor of Bank Overdrafts Than Race, Income

(Dreamstime)

By    |   Tuesday, 10 June 2025 07:21 AM EDT

Opponents of Congress' decision to lift the Biden-era cap on overdraft fees last month claimed doing so would disproportionately hurt low-income, Black and Hispanic households were wrong, according to a new study released by Liberty Street Economics.

Credit scores, the study's authors said in a report posted to the New York Fed's website, are the primary determining factor in the frequency with which people pay overdraft fees, not their race or income.

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Opponents of Congress' decision to lift the Biden-era cap on overdraft fees last month claimed doing so would disproportionately hurt low-income, Black and Hispanic households were wrong, according to a new study released by Liberty Street Economics.
bank, overdrafts, credit scores, race income, black, minorities, poor, demographics
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2025-21-10
Tuesday, 10 June 2025 07:21 AM
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