Wells Fargo, Bank of America and JPMorgan Chase, three of the biggest U.S. banks, reduced overdraft fees amid criticism from lawmakers that the charges were too high and assessed too often.
The three banks, which offer overdraft protection on all checking accounts, will allow consumers to opt out of the service, eliminating the potential for paying overdraft fees. JPMorgan and Wells Fargo will cancel fees for accounts overdrawn by $5 or less, according to separate statements. Bank of America will end fees on accounts that are short $10 or less.
Banks and credit-card lenders have come under fire because of the fees, which are charged when customers exceed the balance on their checking accounts by writing checks or using a debit card. Customer complaints about fees on bank accounts and credit cards helped spur calls for a consumer financial-protection agency.
JPMorgan currently charges $25 for the first infraction in 12 months, $32 for overdrafts up to four times, and $35 after that. BofA levies $35 if the amount overdrawn is more than $5 and a $10 fee for shortfalls of $5 or less. Wells Fargo charges $35, while Wachovia, acquired by Wells Fargo on Dec. 31, charges $22 for the first infraction in a 12-month period and $35 after that.
Overdraft-fee changes
Bank of America: $35, none for overdrafts of less than $10 a day, maximum of four per day, down from 10
JPMorgan Chase: $25, none for overdrafts of $5 or less; maximum of three per day, down from six
Wells Fargo: To be decided, currently $35, none for $5 or less; maximum of four per day, down from 10
