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

The banks are listening…..they are dropping some overdraft fee’s and offering better debit card fee’s

Back on September 9th I wrote a post on how the banks are making money on over draft fee’s and such……well a guess the bankers can read…because after a few pieces on the overdraft problems in the media….the  Bank of America, JPMorgan Chase, and now Wells Fargo, are going to readjust their fee structure for debit cards, and offer customers the option of not having overdraft protection……

Those Banks will also eliminate fee’s for accounts overdrawn by as little as $5 to $10, or less……….While that is good news …one wonders where they are going to make up the lost revenue?

September 24, 2009 Posted by | Other Things, Politics | , , , , , | Leave a comment

The banks are listening…..they are dropping some overdraft fee's and offering better debit card fee's

Back on September 9th I wrote a post on how the banks are making money on over draft fee’s and such……well a guess the bankers can read…because after a few pieces on the overdraft problems in the media….the  Bank of America, JPMorgan Chase, and now Wells Fargo, are going to readjust their fee structure for debit cards, and offer customers the option of not having overdraft protection……

Those Banks will also eliminate fee’s for accounts overdrawn by as little as $5 to $10, or less……….While that is good news …one wonders where they are going to make up the lost revenue?

September 24, 2009 Posted by | Other Things, Politics | , , , , , | Leave a comment

How your bank makes money………..

Last year…… Banks made  $35 Billon in over draft fee’s…..Yep, that’s right…they finally got smart and cashed checks in their ‘best ‘accounts that go negative for a few dollars. For that comfort,  you pay them, and they make a boat load of money.

August 12, 2009 Posted by | The Economy | , , , | Leave a comment