BofA to end $35 overdraft fee on debit purchases
By Hibah Yousuf, staff reporterMarch 10, 2010: 8:38 AM ET
NEW YORK (CNNMoney.com) — Bank of America said Wednesday that it plans to ditch overdraft fees on debit card purchases this summer.
The Federal Reserve recently announced new requirements that are slated to go into effect in July. But the Charlotte, N.C.-based lender's move goes one step further.
The Fed's new rules will prevent banks from automatically enrolling customers in overdraft protection programs, which charge fees when consumers spend more than they have in their accounts. More than 75% of banks automatically sign customers up for overdraft programs, according to a study by the Federal Deposit Insurance Corp.
With the bank's new policy, BofA (BAC, Fortune 500) debit card purchases that would push checking account balances into the red will be declined for new customers beginning in June, and for existing customers starting in early August.
For customers who attempt to withdraw insufficient funds at ATM machines, BofA will alert them that a $35 overdraft fee will kick in if they continue and ask them to confirm or decline the transaction.
via BofA to end $35 overdraft fee on debit purchases – Mar. 10, 2010.
Popularity: unranked [?]
