Classify this under It’s About Time:
Bank of America, the largest bank in the U.S., has finally decided to stop charging automatic overdraft fees on debit card purchases starting in June for new customers and in August for existing ones.
Instead, the bank – which I use and own stock in – will do what it should have done all along, notify the customer that he doesn’t have any money left, and if he wants to borrow, it’s going to cost $35.
As a result, BofA is expected to lose hundreds of millions of dollars in fees, mostly from lower income customers who need to budget better and can’t afford $35 fees every time they take out $20 they don’t have.
But fellow stockholders should not worry. BofA will find other ways to nickel and dime us and I am sure that despite the warning, many people will still pay the $35 fee to get a loan that even a loan-shark would be embarrassed to offer.
Other major banks are also making similar changes as the result of federal mandates.
For more details click the CNN story by Hibah Yousuf here.
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[...] of the fees, the suit says. Bank of America – the largest bank in the U.S. – stopped a similar policy last [...]
they like to promote their email notifications system re balances, account activity, but mine has not worked for months and they say they know of the problem but nothing has been fixed. It’s a false promise by them to ‘help avoid’ fees. Amazingly, the system works for their notice to me i.e. my monthly statement is ready, but not on vital notices that would save me from overdraft fees.