Bank of America Will Cut Overdraft Fees to $10 From $35

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Published on January 12, 2022 - Duration: 01:31s

Bank of America Will Cut Overdraft Fees to $10 From $35

Bank of America Will Cut Overdraft Fees , to $10 From $35.

Bank of America announces the change to overdraft fees on Jan.

11.

The reduction is set to take effect in May.

Overdraft fees have come under increasing scrutiny in recent years.

At issue is whether or not the fees disproportionately penalize low income families and individuals.

Since President Joe Biden took office.

The Consumer Financial Protection Bureau (CFPB) has prioritized this particular bank practice.

Other major U.S. banks, including Chase and Wells Fargo, have also made changes to their overdraft policies.

Other major U.S. banks, including Chase and Wells Fargo, have also made changes to their overdraft policies.

Analysts say that Bank of America's new policy is an attempt to stay ahead of what could end up being new federal regulations.

Itโ€™s an astute political risk-management strategy.

, Karen Petrou, Federal Financial Analytics, via 'Wall Street Journal'.

It does pay to get out ahead of the reaper, and it does seem certain that the CFPB will turn to regulating overdraft fees, Karen Petrou, Federal Financial Analytics, via 'Wall Street Journal'.

Consumer advocates say the overdraft policy will make an impact for low income customers.

Bank of Americaโ€™s decision will provide much-needed relief for customers who least can afford the burden of overdraft fees ... , Mike Calhoun, president of the Center for Responsible Lending, via 'Wall Street Journal'.

... and should lead other financial institutions to drop these fees that disproportionately impact low-income, Black and Latino Americans, Mike Calhoun, president of the Center for Responsible Lending, via 'Wall Street Journal'.

In tandem with other changes to overdraft policies.

Bank of America's overdraft revenue will decrease by 97 percent from revenue collected in 2009


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