Bank of America on Tuesday announced that they are placing a cap on the amount of charges they apply to over draft fees. The move signals a change in policy from earlier this year when rates continued to climb.
Under their new policy no charges will apply to any account that is overdrawn by $10 or less for no more than a 24 hour period. They’ve also announced that the additional $35 dollar fee for over drafts will only be charged if the customers account isn’t at a positive balance within 5 business days from the offense.
Bank of America has also announced that they will limit the “number of times an ovedraft fee can be charged to a single account on any given day.” The number of charges has dropped from 10 to only four.
They did however earlier this year raise the “first time fee” for a yearly overdraft from $25 to $35 and that price increase will remain in effect under the companies new policies.
JPMorgan and Chase is the next company expected to overhaul their over draft policy, although a time frame for the policy changes for that company are still unknown.
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