+- MacResource (https://forums.macresource.com)
+-- Forum: My Category (https://forums.macresource.com/forumdisplay.php?fid=1)
+--- Forum: Tips and Deals (https://forums.macresource.com/forumdisplay.php?fid=3)
+--- Thread: burn your DRAFT card?!....we did it!! banks change overDRAFT fee structure..... (/showthread.php?tid=84864)
Pages:
1
2
burn your DRAFT card?!....we did it!! banks change overDRAFT fee structure..... - NewtonMP2100 - 09-23-2009
....our post did it....helped to make the change.....thanks to everyone involved.....
...guess it pays to have some whine with our cheese.....
Bank of America, JPMorgan overhaul overdraft fees
....As lawmakers prepare to implement sweeping credit card reforms, Bank of America Corp. and JPMorgan Chase & Co. are moving to overhaul overdraft fees and practices that have been criticized industrywide as excessive and harmful to consumers.
Bank of America Corp. said Tuesday it will cap the fees it charges customers for overdrawing their accounts, backpedaling on the hikes the company imposed just this year. Starting Oct. 19, Bank of America no longer will charge overdraft fees when a customer's account is overdrawn by less than $10 in one day.
A $35 fee will still be levied if the account isn't brought into balance within five days.
The Charlotte, N.C.-based bank also will limit to four the number of times an overdraft fee can be charged on an account per day. Just this year, the bank had raised that cap from five to 10. It also raised the fee this year for the first overdraft in a 12-month period to $35 from $25 — a hike that still stands.
Enrollment in the bank's overdraft program is currently automatic for new customers, and opting out is possible only in "very limited" circumstances, said Anne Pace, a Bank of America spokeswoman. But now customers will be able opt out, meaning that transactions will be denied at the register if customers don't have enough money in their accounts to cover a purchase.
Pace said the company didn't have an estimate on how many people might opt out of the overdraft program, noting that many consider it a useful backup. Customers will need to visit their local branches to opt out. They will also be able to call, Pace said, but the appropriate phone number hasn't yet been determined.
When asked about the reversal from the fee hikes earlier this year, Pace said the company is responding to the "changing needs" of customers in the difficult economic environment.
JPMorgan Chase & Co. also will be overhauling its overdraft fees, a spokeswoman said late Tuesday. Starting in the first quarter of 2010, the bank will make overdraft protection opt-in for all customers, post transactions to accounts as they occur, and eliminate fees when accounts are overdrawn by $5 or less. It will also reduce the maximum number of fees per day to three from six.
The changes will apply to all customer accounts, the spokeswoman said.
The banks' turnaround comes as credit card reforms passed earlier this year will soon limit banks' ability to raise fees and interest rates and require greater disclosure about costs. Banks also will have to give customers the choice to opt into over-the-limit programs for credit cards, which are similar to overdraft programs and charge consumers for spending beyond their credit limit.
The credit card law doesn't address debit cards, however, and banks can still automatically enroll cardholders into overdraft programs. Three-quarters of large banks have automated overdraft programs, according to a 2006 study by the Federal Deposit Insurance Corp.
Consumer advocates say automatic enrollment in overdraft programs is misleading, because most people assume they can only spend the money they have when using debit cards. But the programs have become an industry standard in the past several years, and a hefty source of revenue for banks.
However, Bank of America said that starting in June it will give consumers the choice to opt into overdraft programs when they sign up for an account. Other changes coming in June include:
_An annual limit for the number of times its customers can overdraw their accounts when making purchases with debit cards.
_Customers who are nearing the annual limit will be contacted by the bank and be provided "education and tools" to help them manage their budgets.
_Customers who reach the annual limit will have their overdraft ability restricted.....
OVER and out......?
Re: burn your DRAFT card?!....we did it!! banks change overdraft fee structure..... - rgG - 09-23-2009
Sounds like an improvement. The squeaky wheel got greased I guess.
Re: burn your DRAFT card?!....we did it!! banks change overDRAFT fee structure..... - cbelt3 - 09-23-2009
It wasn't the squeaky wheel, it was threats of governmental oversight. The "Payday loan' industry got a legislative smackdown here in Ohio last election, where the incredible usury that they charge was shut down (and many of them closed as a result).
Re: burn your DRAFT card?!....we did it!! banks change overDRAFT fee structure..... - Robert M - 09-23-2009
cbelt,
Not only was this done due to government criticism and threats, but I suspect the bank is looking at it from a marketing and publicity point of view. Think of it as feel good changes. Unfortunately, they either barely touch upon or do not address at all the bigger issue of financial irresponsibility on the part of their customers.
Robert
Re: burn your DRAFT card?!....we did it!! banks change overdraft fee structure..... - OWC Jamie - 09-23-2009
I got a letter from BoA last week stating all these changes were due to upcoming government regulations.
bunch of fee changes
removing some
adding others
BoA still sucks
never should have allowed any of these institutions to get this large by buying up thier competition.
Re: burn your DRAFT card?!....we did it!! banks change overDRAFT fee structure..... - mattkime - 09-23-2009
>>It wasn't the squeaky wheel, it was threats of governmental oversight.
But isn't that the squeakiest wheel of all?
Re: burn your DRAFT card?!....we did it!! banks change overDRAFT fee structure..... - Robert M - 09-23-2009
Matt,
Nah. It's the hammer that takes control of the wheel, regardless of the wheel feels about it.
Robert
Re: burn your DRAFT card?!....we did it!! banks change overDRAFT fee structure..... - ztirffritz - 09-23-2009
My bank doesn't even have overdraft. They just draw from a line of credit and charge a reasonable interest rate. It is actually nice feature.
Re: burn your DRAFT card?!....we did it!! banks change overDRAFT fee structure..... - mattkime - 09-23-2009
>>My bank doesn't even have overdraft. They just draw from a line of credit and charge a reasonable interest rate. It is actually nice feature.
Most banks do that but its essentially like have a credit card attached to the end of your bank account.
Re: burn your DRAFT card?!....we did it!! banks change overDRAFT fee structure..... - the_poochies - 09-23-2009
AMEX sent me a letter announcing it was raising my interest rate to 17.99 % in October. I pay my bill on time every month, although not in full.
I am no longer an AMEX cardholder.