Bank of America says the revenue it gets from overdrafts has dropped 90% from a year ago, after the bank reduced overdraft fees to $10 from $35 and eliminated fees for bounced checks.
The nation’s largest banks are moving away from the practice of charging exorbitant fees on what are mostly small-dollar purchases after years of public pressure. Bank of America CEO Brian Moynihan told The Associated Press that he expects whatever residual income the bank earns from overdraft fees will come from small businesses using overdraft fees as a convenience.
BofA’s new overdraft fee policy was implemented starting in June. Moynihan said in the policy’s first two months, overdraft fee revenue declined 90% and the bank was seeing fewer instances of the fees being collected. He did not share specifics on the number of instances.
“The remaining (people that get charged overdraft fees) are business owners who are moving money around,” Moynihan said. “It’s not individuals anymore, frankly.”
Click here to read the rest of the article written by Ken Sweet AP Business Writer over at ABC News
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