Wells Fargo eliminates bounced check charges

Wells Fargo announced changes to its overdraft policy on Tuesday, saying it would give customers access to direct deposit first, a 24-hour grace period before any overdraft charges, and non-sufficient funds fees until the end of the first quarter. will end.

“The growth of Wells Fargo to the core is ensuring that we focus on our customers, first and foremost,” Mary Mack, CEO of Wells Fargo Consumer & Small Business Banking, said in a statement. “The enhancements we’re announcing today add to the changes we’ve made before and provide our customers with more choice and flexibility in meeting their needs.”

Bank of America said in a press release Tuesday that the end of the bounced check fee will be effective next month. The reduction in overdraft fee will start in May.
Bank of America said that after all these latest changes take effect, the bank will reduce its fees for overdrafts by 97% from 2009 levels.

Holly O’Neill, President of Retail, said, “Over the past decade, we’ve made significant changes to our overdraft services and solutions, reducing customers’ reliance on overdrafts, and helping customers manage their deposit accounts and overall finances. Resources are provided to help.” Banking for Bank of America in release.

Bank of America’s move comes a little over a month later capital a ,cof,The country’s sixth-largest consumer bank by assets, said it would stop penalizing customers for withdrawing more cash or writing checks for more money in their accounts.
BofA is the second largest bank in the United States, behind only JPMorgan Chase ,JPM,,
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Smaller banks such as Allied and digital-only financial firm Alliant have also recently eliminated overdraft fees.
During this, PNC ,PNC,The country’s seventh largest bank, last year launched a so-called low cash mode, which makes it easier for customers to manage their accounts on their smartphones to avoid fees.
Overdraft fees have been a lucrative, but controversial, source of revenue for banks. Regulators have argued that those who can afford the least fees, the country’s poorest, often end up paying the most.

Ending the ‘Overdraft Show’?

The Consumer Financial Protection Bureau said in a statement last month that banks generated about $15.5 billion in overdraft fees in 2019 — and 40% of the fees generated by large banks were brought in by JPMorgan Chase, BofA and JPMorgan Chase. Wells Fargo ,WFC,,

Senator Elizabeth Warren last year rebuked JPMorgan Chase CEO Jamie Dimon for its fees, calling him the “star of the overdraft show.”

But JPMorgan Chase told CNN Business in December that it has already taken some action on overdraft fees and insufficient funds fees.

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“We have eliminated non-sufficient funds fees and significantly increased the amount a customer can overdraft before incurring an overdraft fee,” Elizabeth Seymour, a spokeswoman for the bank, said last month. “These changes reflect our continued efforts to offer our customers the best, most competitive products and services.”

The bank also said in December that from this year onwards, it would allow customers to increase the balance by the end of the next business day to avoid overdraft charges from the previous day.

JPMorgan Chase customers will have access to direct deposit paychecks for up to two business days.

But even though the big banks eliminate many overdraft fees, they are doing fine without them. Financial stocks have jumped so far this year and have risen sharply over the past six months, thanks to longer-term bond yields that help make mortgages and other loans more profitable for banks.
JPMorgan Chase, Wells Fargo and Citigroup ,C, All will report fourth-quarter earnings on Friday. BofA reports its latest results next week.

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