BofA to give up most debt overdraft fees

In advance of a Federal Reserve rule change that makes it mandatory for banks to obtain consumer permission before charging a fee for overdrafts, Susan Faulkner, Bank of America's executive in charge of the bank's deposits and credit card products said, "what our customers told us is that 'if we don't have the money, I don't want to overdraft.'"
The Fed's rule change goes into effect July 1. Bank of America said its policy would change in mid-June for new customers and in early August for existing customers, USA Today reported Wednesday.

The policy shift gives up a sizable revenue-generator. In 2009, banks took in $38.5 billion in overdrafts fees, economic research firm Moebs Services reported.

"My hope is that this will provide the tipping point where the rest of America's financial institutions will voluntarily do away with hidden overdraft fees," said Martin Eakes, chief executive officer of the Center for Responsible Lending.

Bank of America said the change applies to debit card use at the point of sale. At ATM machines, customers would be warned of a $35 fee if they complete a transaction that amounts to an overdraft, The Wall Street Journal said.

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