In the wake of new legislation aimed at protecting consumers from burdensome bank overdraft fees, a survey by the National Foundation for Credit Counseling reveals that 26 percent of Americans will still opt-in to overdraft coverage, despite there being a fee charged for the service.

Recent legislation passed by Congress has changed how financial institutions will authorize and pay overdrafts associated with checking accounts. Although most overdrafts from paper checks and automatic payments will continue to be covered (for a fee), consumers must now opt-in to authorize this service for ATM and debit card transactions made at a point of sale.

As of Aug. 15, 2010, both existing and new customers of financial institutions must sign up for overdraft protection before the bank is allowed to charge the customer a fee for clearing the transaction. If consumers do not notify their bank or credit union, they will not be covered, thus no action is necessary by consumers who do not wish to opt-in.

"It is disturbing that this many people live so close to the financial edge," said Gail Cunningham, spokesperson for the NFCC, of the agency’s survey results. "Anticipating that they will overdraw their account, they are willing to exacerbate the problem by paying a fee to have their purchases approved. The real answer lies in examining the root problem and resolving it, as continued overdrafts can result in some significant financial damage."

The average overdraft fee charged by a financial institution is $27, with approximately half of the more than $37 billion generated in fees in 2009 coming from debit card and ATM overdrafts, according to a statement from the NFCC. The agency said banks are anxious to retain these fees, with many having launched significant campaigns encouraging consumers to opt-in.