Consumers are feeling the effects of struggling banks in the form of outrageous overdraft fees, and as Congress considers legislation to crackdown on the controversial practices, some banks are changing their policies.
Starting next month, Bank of America will eliminate charges for those who overdraw by less than $10 a day, and will cut the number of times consumers can get hit with overdraft fees to four times a day, down from the previous 10. Then, beginning in June Bank of America will no longer automatically pay overdrafts for new customers- and charge $35, unless the customer requests that the bank do so.
Chase said it will start clearing debit card and ATM transactions in the order they occur instead of the largest dollar amount first, which depletes the consumers’ bank accounts faster. Beginning in the first quarter of 2010, the company will stop approving debit transactions and charging a fee, unless the customer has signed up for that service.
These new policies will likely put pressure on other banks to review their overdraft fees so that they don’t lose customers to competitors, according to Richard Hunt, president of the Consumer Bankers Association.
http://www.usatoday.com/money/industries/banking/2009-09-22-lightened-bank-overdraft-fees_N.htm
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