If it was a loan the fee amount would never exceed the overdraft amount. But the fee is usually huge compared to the amount the bank is covering. No one should

If it was a loan the fee amount would never exceed the overdraft amount. But the fee is usually huge compared to the amount the bank is covering. No one should be taking a loan out at those terms. For example, if you overdraft by $1 you could be charged $35 as a cost of this “loan”. No one should take out a loan at 3500% interest. You’d get a better rate at a payday lender. Since this “loan” amount is not related to the cost of the service I’d call it a junk fee.