If you have ever been charged $35 for the privilege of spending 3 bucks that you don’t have, you understand how frustrating overdraft fees can be. This fall, these fees will be illegal if you haven’t opted in. One bank has decided to set the trend by voluntarily ceasing overdraft fees in advance of the new rules.
Bank of America announced they would stop allowing overdrafts caused by debit card usage. Instead of getting charged an overdraft fee on your debit card purchase, your transaction will be denied.
Most consumers would rather face the one-time embarrassment and gather the change they have on hand to make that purchase rather than incur over $100 in overdraft fees for three small purchases. Of course, if image is more important than your finances, you are welcome to opt in to overdraft “privileges.”
When an industry giant like Bank of America makes a change this big, it puts tremendous pressure on other banks to follow the move. Expect most banks to end the practice by this summer.
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Bank of America Ends Overdraft Fees on Debit Cards
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