Bank of America recently announced they will end charging the $35.00 over draft fee for those who try to use their debit card for a transaction that will result in a negative balance on their checking account. This is a great move and one more step towards common sense in the banking industry. Don't spend money you don't have.Rules set by the Federal Reserve that will ban banks from charging such fees, without first getting permission from the customer, are set to take effect July 1st, but Bank of America is going a step further than the regulations require. It will simply no longer allow debit card purchases to go through if there isn't enough money in the account.
For ATM withdrawals, customers who try to withdraw more than their balance will have to agree to pay a $35 overdraft fee before they can proceed with the transaction. This should take effect June 1st for new accounts and in August for existing customers.
2 comments:
It's expected that what Bank of America has started today, would soon be followed by other banks. If this happens then overdraft charges would soon be a history.
Customers, henceforth, would have to agree to overdraft benefits if they want to continue enjoying it. Banks wouldn't do it voluntarily in the future.
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