Bank of America is considering a new type of account that would not allow customers to overdraft at ATMs or through an automatic bill payment, the Wall Street Journal reports. The new account would be the latest move by the Charlotte bank to pull back from a practice that allows customers to spend more money than they have in their accounts – in exchange for lucrative fees for banks.
Regulators have cast a critical eye on overdrafts over the past few years, and a federal rule change required bank customers to actively opt-in to overdraft protection.
Bank of America took things a step further and ended the ability to overdraft using a debit cards. That decision was estimated to cost the bank $1 billion in annual revenue.
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Friday, October 18, 2013
Bank of America considering account without overdrafts
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12 comments:
Let them eat cake.
As usual Banks and not only Bank of America, will find a better way to squeeze their customers.
Didn't Bank of America earn 2.2B last quarter? Hummm...
Love my credit union.
Don't spend money that you don't have, and you won't get overdraft fees. Blaming banks for overdraft fees is like blaming cops for speeding tickets. Grow up, people.
"Love My Credit Union."
I don't know any credit Unions that don't charge overdraft fees. Most Credit Unions have overdraft protection just like BofA. Which simply rolls the overdraft to another accot or a credit line. There is nothing different about a credit union (Banks implemented the program long before credit unions did). - Sorry some rhetoric is just ridiculous
"As usual Banks and not only Bank of America, will find a better way to squeeze their customers."
- I guess you would rather them have overdraft fees?
- Apparently it is evil for a business to make a profit
- Apparently there is something wrong with a business charging a fine that also generates reenue for them when someone writes a bad check.
- Apparently there is something wrong with a business NOT charging a fine that also generates reenue for them when someone writes a bad check. Catch 22. Gotta love the internet trolls. My guess is if banks had had a more profitable way to "squeeze" customers they would have already implemented it, so why don't you explain to us what they would do in place of overdraft and overdraft protection.
Dodd-Frank has taken away the option of overdraft and for those that think this is a good thing, please encourage our govt. to follow the same rules it has legislateded on us. Ditto for ObamaCare
The interesting thing about this is what will happen to account holders that 'run out of money', but have automated bills due for payment? Their bill(s) won't get paid and they'll get hit by a late fee and interest rate charges where applicable by the owed biller. Perhaps a few more people will learn a little personal responsibility with this option. If only our government would take a lesson...don't spend what you don't have.
"The interesting thing about this is what will happen to account holders that 'run out of money', but have automated bills due for payment? Their bill(s) won't get paid and they'll get hit by a late fee and interest rate charges where applicable by the owed biller."
- That is no different than today. If you bounce a check, the bill doens't get paid and the "biller" charges a fee and still will, regardless of what the bank does.
"Perhaps a few more people will learn a little personal responsibility with this option."
- Obviously less people will learn a lesson if only the "biller" is charging them for overdraft and the bank is not...
"Perhaps a few more people will learn a little personal responsibility with this option
What a joke. Do you mean they should be as fiscally responsible as BofA? The average person dousn't have the US taxpayer to bail them out after they make bad decisions.
On the one hand accounts without overdraft will really cause some more responsibility, but most likely they will cause a lot of troubles as well. Especially in the very beginning.I am sure we will have a lot of loans for emergency, as troubles will come with not paying regular bills or something like that.
Bank of America took things a step further and ended the ability to overdraft using a debit cards. It is good decision in the favor of Bank of America.online cashDon't spend money that you don't have, and you won't get overdraft fees. Blaming banks for overdraft fees is like blaming cops.
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