No additional fees for returned checks in this bank

The end of the fee for the return check will take effect next month, Bank of America said in a press release on Tuesday. The reduction of the overdraft starts in May.

Bank of America said that when all these recent changes take effect, the bank will end up cutting overdraft fees by 97% from 2009 levels.

“Over the past decade, we’ve made significant changes to our overdraft services and solutions, reduced customers’ dependence on overdrafts, and provided resources to help customers manage their deposit accounts and overall finances responsibly,” said Holly O ‘Neill, President of Retail. banking for Bank of America, in the release.

Bank of America’s move comes a little more than a month later Capital one (MEMORY), the country’s sixth largest consumer bank by assets, said it would stop punishing customers for withdrawing more money or writing checks for more money than they have in their account.
BofA is the second largest bank in the United States, just after JPMorgan Chase (JPM).
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Smaller banks such as Ally and the digital finance company Alliant have also recently eliminated overdraft fees.
Meanwhile. PNC (PNC), the country’s seventh largest bank, launched a so-called low-cash mode last year that makes it easier for customers to manage their accounts on their smartphones to avoid fees.
Overdrafts have been a lucrative, yet controversial, source of income for banks. Regulators have argued that those who can least afford the taxes, the country’s poorest, often end up paying the most.

End the ‘overdraft show?’

The Consumer Financial Protection Bureau said in a statement last month that banks deposited nearly $ 15.5 billion in overdraft facilities in 2019 – and that 40% of fees generated by large banks were collected by JPMorgan Chase, BofA and Wells Fargo (WFC).

Senator Elizabeth Warren paralyzed JPMorgan Chase CEO Jamie Dimon last year for his fees, referring to him as “the star of the cover show.”

But JPMorgan Chase told CNN Business in December that they have already taken some action regarding overdraft fees and insufficient funds.

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“We eliminated the insufficient funds fee and significantly increased the amount a customer can overdraw before overdrafts are charged,” said Elizabeth Seymour, a spokeswoman for the bank, last month. “These changes reflect our continuous efforts to provide the best, most competitive products and services our customers want.”

The bank also said in December that from this year onwards, it will give customers until the end of the next working day the chance to increase their balances so that they can avoid overdraft fees from the previous day.

JPMorgan Chase customers will also have access to directly paid payslips up to two working days early.

But even though large banks eliminate many overdrafts, they do just fine without them. Financial equities have risen so far this year and have risen sharply over the past six months thanks to rising long-term bond yields, which are helping to make mortgages and other loans more profitable for banks.
JPMorgan Chase, Wells Fargo and Citigroup (C) will all report fourth quarter results Friday. BofA reports its latest results next week.

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