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Wednesday, March 10, 2010
Bank of America to deny debit card overdrafts
Kathy Chu ―
USA TODAY
In a significant policy reversal, the USA’s largest bank plans will stop allowing consumers to overdraw their checking accounts with one-time debit card transactions.
Bank of America’s (BAC) new policy — which takes effect in mid-June for new customers and early August for existing customers — comes amid intense public scrutiny of financial institutions’ overdraft fees. In 2009, banks earned about $38.5 billion from overdraft and insufficient-funds fees, estimates Moebs Services, an economic research firm.
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