Courtesy of Pam Martens
Newly Opened Woodforest National Bank Location at 2014 S. Irby St., Florence, South Carolina. Located Inside Walmart.
By Pam Martens and Russ Martens
Senator Chris Van Hollen
Yesterday, during a Senate Banking Committee hearing, Senator Chris Van Hollen of Maryland caught our attention when he said that there are three U.S. banks that “make 100 percent of their profits on overdraft fees.” He named the three banks as First Texas, Academy Bank and Woodforest National Bank. Van Hollen explained that most folks paying these fees are living paycheck to paycheck and many don’t even know that they’ve over-drafted their account because many banks provide no warning at the time the overdraft is occurring.
The Consumer Financial Protection Bureau (CFPB) issued a report on overdraft fees in 2017, finding the following:
“A small group of consumers pay most of these fees. In a given year, only 30% of consumers overdraw their checking account. The 8% of consumers who overdraft more than 10 times per year pay 74% of overdraft fees. These consumers are charged $380 in overdraft fees on average annually.”
Senator Van Hollen also caught our attention when he said that one of the three banks making 100 percent of their profits from overdraft fees, Woodforest National Bank, had 12 of their branches in his state of Maryland located in local Walmart stores. We decided to check out that bank.
It turns out that the vast majority of Woodforest National Bank’s 769 branches in 17 states are in local Walmart stores – more than 700 in fact, according to information on its website. In 2020 and 2021, the bank has continued opening new branches in Walmart stores.
