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Banks Change Some Overdraft Rules

Category: Bank Deals, Checking Accounts, News and Notes- fhuff- 8:14 am/ September 23, 2009

Banks have come under fire for heaping multiple overdraft fees on unsuspecting customers. But a couple of banks are changing their rules in what they say is an attempt to help customers who are struggling financially. Some of the changes include:

  • Bank of America won’t charge fees to customers who overdraw their checking accounts by less than $10 a day. The bank also says it plans to charge only up to four overdrafts a day, down from the current 10. The changes take affect next month.
  • JP Morgan Chase will clear debit and ATM transactions in the order in which they occur. Many banks have been criticized for clearing the largest transactions first, which often results in customers overdrawing their checking accounts. Customers will be required to sign up for overdraft services if they want that protection. Those changes go into affect early next year.

The rule changes come as some legislators have turned their attention to reining in fees at banks. Overdraft fees are expected to total $38.5 billion this year, according to economic research firm Moebs Services.

You can guard against unnecessary overdraft fees by monitoring your checking account more closely. Also, contact your bank to opt out of automatic overdraft protection.

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