Main Street

Bank of America Drops Overdraft Fees

No question it’s good news that Bank of America will no longer charge overdraft fees on debit card purchases, instead just declining the card if there isn’t enough money in the account.

But of course, they’re not doing it out of the goodness of their hearts.

As of July 1, the Federal Reserve will require that banks obtain a customer’s consent before they can charge them overdraft fees for A.T.M. transactions and debit purchases; many banks now automatically enroll customers.

In anticipation of the new Fed rule, some banks have begun marketing campaigns to encourage their customers to opt in to overdraft protection to keep the dollars flowing.

Several bills have been introduced in Congress that would go beyond the Fed’s rules on overdraft fees.
Bank of America, by deciding to scrap overdraft charges on debit card purchases instead, is hoping to bolster its reputation with consumers at a time when anger at banks for their role in the financial crisis remains high.

So noble of them: They charge every fee they can think of, they fight attempts to regulate them, then as soon as a new regulation actually gets passed, they’re so concerned about what their customers want that butter couldn’t melt in their mouths.

Tags: credit cards