Cengage Advantage Books: Introduction to Business Law 4th Edition by Timothy Koch, Jeffrey Beatty, Jeffrey Beatty, Susan Samuelson, Susan Samuelson

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The fee on a debit card overdraft can be as high or higher than the amount drawn out. Instead of overdrawing their accounts, consumers would be much better off either not spending the money, using a credit card, or paying cash. Typically, the people most likely to sign up for the right to overdraw their accounts are those who can least afford it-they have maxed out their credit cards and used up any home equity. Is it ethical for a bank to offer an overdraft plan