Bank Of America Will Eliminate Non-Sufficient Funds Fees And Cut $35 Overdraft Fees To $10
Well…this is one way to throw another stimmy to the middle and lower class.
Keeping pace with similar policies being put in place by other banks, Bank of America announced this week that it is going to eliminate charges for non-sufficient funds on its customers accounts and reduce its overdraft fees.
The move comes amidst outcry from Senators like Elizabeth Warren, who has spoken out against the fees, claiming they “snatch billions from struggling families”.
“Big banks raked in billions from this abusive practice” during the pandemic, Warren has said. As a result, banks like Capital One and Ally have cut their fees in recent months.
For Bank of America, non-sufficient funds fees are going to be eliminated starting next month, according to a Tuesday report by Bloomberg. Overdraft fees will also be reduced from $35 to $10 starting in May.
The bank, based in Charlotte, North Carolina, also said it is going to eliminate transfer fees associated with its Balance Connect for overdraft protection service.
Holly O’Neill, president of retail banking at Bank of America, told Bloomberg: “These latest steps will further support our clients and empower them to create long-term financial wellness. We remain committed to taking actions that will further bring down overdraft fees in the future.”
Some banks had offered waivers to families during the pandemic, amidst a broader slowdown in consumer spending that saw the fees contribute less to revenue than in previous years.
Plus, who needs miniscule $35 overdraft fees when you can borrow from the Fed at 0% and charge 25% interest on credit cards?
Tue, 01/11/2022 – 17:05
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