Bank of America and Wells Fargo & Co will not charge any fees for checks bouncing. They are also working on new policies which waive the overdraft services fees. They are the latest banks to announce such policies, reports Reuters.
Relax In Bouncing Checks And Overdraft Fees
The second-largest Bank of the U.S., Bank of America, announced it would scrap the fee, which charges customers whose overdraft accounts to $10 from $35 starting in May. Now customers will not pay the $35 non-sufficient funds (NSF) fee for bouncing checks and other automated payments.
Instead, it will impose the $12 fees earlier when customers use overdraft protection services. Such fees have deformed the ire of U.S. lawmakers and the U.S. Consumer Financial Protection Bureau’s scrutiny. The observer said that banks were exploring new guidance for curbing banks’ reliance on NSF and overdraft fees, which have blown up, generating an estimation of $69 billion for banks in the third zone of 2021 compared with $15 billion for the entire year of 2019.
According to The Wenatchee World, Bank of America has been talking with the Consumer Financial Protection Bureau regarding its new policy, which is positive in response, said Holly O’Neill, the Bank’s president of retail banking.
Customer’s Data Is Backbone Of Policies
Mary Mack, CEO of Wells Fargo’s Consumer and Small Business Banking, said that after studying the customer spending data, only then the Bank take these steps.
Along with certain waiving off fees, Wells also facilitates its customers who overdraw their accounts 24 hours to maintain the balance above $0. It will also be helpful for their customers who access those funds which they receive direct deposits up to two days.
Bank of America also took a practical step for their customers not to deduct any overdraft or cut fees to zero.
“Eliminating overdraft altogether is not really what clients want,” O’ Neil said during a conversation with community advisory groups. He expects the same from other banks too.