Published by admin on 24 Sep 2009
Curbs on Overdraft Fees
Banks curb overdraft fees amid criticism
But customers could see return of monthly fees or minimum balances
Associated Press
Follow up article from previous posting Sept. 21, 2009:
“NEW YORK - Banks are backing off harsh overdraft fees and policies. That’s the good news. The bad news is they’ll probably look to make up that lost profit elsewhere.
It’s a worrisome prospect for the vast majority of customers who never overdraw their funds and have grown accustomed to perks like free checking accounts.
Banks act quickly
The response from banks was swift. The opt-in choice was only one of the changes Bank of America and JPMorgan announced late Tuesday.
Starting Oct. 19, Bank of America customers will no longer be charged overdraft fees when a customer’s account is overdrawn by less than $10 a day. A $35 fee will still be levied if the account isn’t brought into balance within five days.
The bank also will limit to four the number of times an overdraft fee can be charged on an account per day. That’s a reversal from just this year, when the company raised that cap from five to 10. It also raised the fee this year for the first overdraft in a 12-month period to $35 from $25 - an increase that still stands.” Read More.
On Monday, we opened a new checking account. The bank encouraged us to avoid check cashing fees by using a debt card. We were told if you make a purchase of just a few dollars with the debt card per month you can avoid the $16 per month check cashing fee. At the time I wondered why they were pushing the debt card option. Looks like they really want those merchant fees mentioned in the above article along with the overdraft fees that come to those who do not keep a wary eye on those balances. What do you think?
