The nation’s largest banks are moving away from the practice of charging exorbitant fees on what are mostly small-dollar purchases after years of public pressure.
Bank of America CEO Brian Moynihan
Starting the middle of 2021, regional banks such as PNC and Capital One, as well as the online bank Ally, announced plans to eliminate overdraft fees or find ways to curtail them dramatically. Most of the banks said the fees largely impacted the poor and racial minorities, or that the pandemic had shown the banks they could earn big profits without charging fees on their customers, in explaining their decision.
However, Bank of America's decision in January to eliminate non-sufficient fund fees — sometimes referred to as a bounced check fee — as well as cut overdraft fees to $10 is credited with shaking up the industry. BofA for years was cited as one of the top collectors of overdraft fees and still brought in slightly more than $1 billion from such fees last year.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Bank of America's overdraft fees down 90% under new policyBank of America says the revenue it gets from overdrafts has dropped 90% from a year ago, after the bank reduced overdraft fees to $10 from $35 and eliminated fees for bounced checks.
Read more »
Fund managers are no longer 'apocalyptically bearish,' BofA says after latest pollFund managers are no longer 'apocalyptically bearish,' Bank of America strategists said after their latest poll.
Read more »
BofA CEO: Struggling Americans feel they are in a recession“Recession is a word. Whether we are in a recession or not is really not the important thing. It’s what it feels like for the people going through this.”
Read more »
Man convicted for spending spree after $31,000 bank errorAn 18-year-old man was convicted after spending the better part of $31,000 that a bank teller accidentally sent to his account.
Read more »
Egypt’s central bank governor resigns as economic woes mountEgypt's central bank governor resigned Wednesday as the Middle East's most populous nation struggles to curb inflation triggered by Russia's war in Ukraine, high oil prices and a drop in tourism.
Read more »
Man convicted for spending spree after $31,000 bank errorAn 18-year-old man was convicted after spending the better part of $31,000 that a bank teller accidentally sent to his account.
Read more »