Newsroom
Bank of America announces plans to cut overdraft fees effective May 2022
Bank of America announced Tuesday plans to cut overdraft fees from $35 to $10 starting in May 2022. In addition, the bank will eliminate non-sufficient fund fees and no longer charge a transfer fee for a program where customers can use other linked accounts to cover shortfalls.
This plan of action follows similar choices made by Capital One and Ally Bank, as lawmakers have pushed for banks to eliminate overdraft charges. CFPB Director Rohit Chopra has also advocated for the elimination of these overdraft fees.
Last month, the CFPB stated in a report that banks brought in about $15.5 billion from overdraft fees in 2019. Bank of America, JPMorgan Chase, and Wells Fargo accounted for 44 percent of the total overdraft revenue that year, according to the report. In addition, the report noted smaller institutions with overdraft programs typically charged smaller fees.
During a press call following the release of the report, Chopra stated the bureau will take action against large financial institutions whose overdraft practices violate the law.
NAFCU will continue to advocate for credit unions to have access to the tools and flexibility needed to meaningfully work with members who are struggling.