Bank of America to Cut Overdraft Fees to $10 From $35
By Orla McCaffrey and Will Feuer
Bank of America Corp. said Tuesday it would cut overdraft fees to $10 from $35 beginning in May, following other big banks that have rolled back or ditched such charges. Overdraft fees, which are charged when customers don’t have enough cash in their accounts to cover their purchases, are under scrutiny by regulators and politicians who say they unfairly exploit cash-strapped families. Under the Biden administration, the Consumer Financial Protection Bureau and the Office of the Comptroller of the Currency have pressed banks to scale them back. In a December report, the CFPB flagged Bank of America, JPMorgan Chase & Co. and Wells Fargo & Co. on their overdraft fees….“It’s an astute political risk-management strategy,” said Karen Petrou, head of Federal Financial Analytics, a regulatory advisory firm. “It does pay to get out ahead of the reaper, and it does seem certain that the CFPB will turn to regulating overdraft fees.”