Don't praise BofA for deciding to stop mistreating customers

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Bank of America plans to announce that it is eliminating $35 overdraft fees on debit-card purchases as the bank tries to stay ahead of a sweeping round of regulations.

Bank of America plans to announce that it is eliminating $35 overdraft fees on debit-card purchases as the bank tries to stay ahead of a sweeping round of regulations.

No one likes bank fees. So why do banks charge them, taking the risk of alienating their customers? The simple answer is that banks aren't not-for-profit businesses, says Sandy McCraren, president of Highland Park Bank & Trust, a community bank in Highland Park, Ill.

Customers who try to make debit card purchases without enough money in their accounts to cover the transaction will be denied at the cash register. For ATM transactions, those who try to withdraw more than their balance will first have to agree to pay a $35 overdraft fee.» E-Mail This     » Add to Del.icio.us

The banking industry has been raking in billions of dollars in overdraft fees from people who use their debit cards without enough money in their accounts. This summer, banks will be required to get customers to "opt in" if they want overdraft protection on debit card purchases. NPR's Tamara Keith reports industry analysts say banks will be scrambling to replace the lost revenue.

JPMorgan Chase will soon stop charging overdraft fees for debit card purchases of $5 or less.

The government has stopped some of the worst abuses by credit card issuers however, those financial institutions are not without ways of continuing to take advantage of customers, Credit-Card Fees: the New Traps