Bank of America is reducing its overdraft fees from $35 to $10 and eliminating insufficient funds fees.
Summary
- Bank of America, the nation’s second-largest bank, says roughly 25% of its overdraft/NSF fee revenue each year came from NSF fees.
- “I’ve been working to reduce or eliminate overdraft fees for 20 years and to give them credit, they really did listen,” said Martin Eakes, CEO of the Center for Responsible Lending.
- After the financial crisis, Democrats put the Consumer Financial Protection Bureau and other regulators in charge of reining in overdraft fee revenue.
- “For many big banks, overdraft fees are still the steady, reliable, predictable, easy revenue that shareholders love,” said Rohit Chopra, the CFPB’s director, in December.Sen.
- Ally Bank, PNC, Santander and Capital One were among the bigger regional banks to effectively eliminate overdraft fees.