BofA sees overdraft charge earnings slashed by 90%


PROVIDENCE Bank of America Corp. has actually lost almost all of its overdraft charge profits after executing a brand-new policy that considerably decreases charges to consumers who overdraft their accounts, according to the Associated Press.

The banking giant was amongst a variety of nationwide and local banks that relocated to waive or minimize overdraft costs in the last few years, stimulated by competitors from fintech companies and a brand-new mindset in Washington, D.C. Previously this year, Bank of America revealed strategies to cut its overdraft costs from $35 to $10 while likewise eliminating the transfer charge for its overdraft security service.

Considering that beginning these modifications in June, the business has actually seen its overdraft profits cut by 90%, CEO Brian Moynihan informed AP.

Bank of America signs up with a number of other banks in unwinding overdraft costs, consisting of JPMorgan Chase & & Co., People Bank and Santander Bank, PBN has actually reported.

For several years, Bank of America was pointed out as one of the leading collectors of overdraft costs, with more than $1 billion in profits from these charges in 2015, AP reported.

In addition to reducing the costs charged for overdraft accounts, Bank of America has actually likewise broadened offerings for accounts that do not have overdraft costs, with half of accounts now readily available with this function.

Nancy Lavin is a PBN personnel author. You might reach her at Lavin@PBN.com

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