BofA to End Debit Overdraft Fees

[babylonsister]

Bank of America to End Overdraft Fees on Debit Purchases
By ANDREW MARTIN
Published: March 9, 2010


In a move that could bring an end to the $40 cup of coffee, Bank of America said on Tuesday that it was doing away with overdraft fees on purchases made with debit cards, a decision that could cost the bank tens of millions a year in revenue and put pressure on other banks to do the same.

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.”

more...

http://www.nytimes.com/2010/03/10/your-money/credit-and-debit-cards/10overdraft.html

[hobbit709]

1. About time

Of course they're doing this out of the goodness of their hearts.:sarcasm:

[rpannier]

2. Funny...

Now that the law has changed they just noticed.

Yeah.... Right

[gleaner]

3. I'll stay with my credit union thank you...

They just put a stop pay for free on a bill that the power company tried to run through twice in error, saving me both a charge from them and from the power company. I love doing business with them. If you can call a financial institution kind, they are kind.

I think a lot of other people are discovering the same thing. That may be one reason B of A is so benevolent all of a sudden. As far as I'm concerned, they can bite my great big butt.

[OffWithTheirHeads]

5. My credit union let me skip payments on two loans while I was out of work!

Think BofA would do that? I find the use of the words "trust" and BofA in the same sentence amusing.

[gleaner]

7. Me too! n/t

[TwilightGardener]

8. I had a credit union hit us with ridiculous overdraft fees--they're good most of the time, and

I have always been in CU's, but they are not equal.

[rucky]

4. How kind of them.

to comply with the new law like that.

[SOS]

6. Bank of America did nothing

Their new policy takes effect in August for existing accounts.
The new Fed rule takes effect on August 15th.

Legal compliance spun by their PR department as some sort of grand gesture.

[TwilightGardener]

9. I could never figure out why you should have overdrafts on ATM/debit.

If the money isn't there, then it isn't there.