Jamesb101.com

commentary on Politics and a little bit of everything else

Bank of America is going to stop overdrafts on debit cards… period…..and the fee….. by July…

Well…..

Thats gonna make some people happy…

And make some people…not so happy…..

People are going to start disciplining themselves if they use the Bank of America card……

Bank officials said that effective this summer, customers who try to make purchases with their debit cards without enough money in their checking accounts will simply be declined. Debit purchases account for roughly 60 percent of overdrafts at Bank of America, the nation’s largest issuer of debit cards.

Banks are bracing for a new federal rule that will require them to get permission from account holders before providing overdraft services for debit purchases and A.T.M. withdrawals. That change was already expected to wipe out billions of dollars in overdraft revenue for the banks.

“What our customers kept telling me is ‘just don’t let me spend money that I don’t have,’ ” said Susan Faulkner, the bank’s deposit and card product executive, who said the overdraft changes were part of a broader push to build trust among its customers. “We wanted to help them avoid those unexpected overdraft fees.”

The bank will continue to provide overdraft protection, for a fee, for checks and automatic payments, say to a biller that debits money from an account each month. Consumers who try to exceed their balance when making an A.T.M. withdrawal are already being notified that they will be charged a $35 overdraft fee if they choose to proceed.

There has been considerable consumer and political outcry against overdraft fees on deposit accounts. Over the last decade, the fees have become a major source of revenue for banks as they realized they could make more money by covering consumer overdrafts, offering a short-termloan for a fee, than in denying them.

But as reports surfaced of customers incurring hundreds, even thousands, in overdraft fees, often for purchases of just a few dollars like a cup of coffee, regulators and lawmakers stepped in. 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.

More…….

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March 10, 2010 - Posted by | Government, Law, Media, Men, Other Things, PoliticalDog Calls, Politics, The Economy, Updates, Women | , ,

1 Comment »

  1. […] the original post here: Bank of America is going to stop overdrafts on debit cards… period…..and the fee….. by July… Related Posts Post a […]

    Pingback by Bank of America is going to stop overdrafts on debit cards… period…..and the fee….. by July… | March 10, 2010 | Reply


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