Capital One to eliminate overdraft fees next year

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Capital One said on Wednesday it would eliminate everything Overdraft fee Insufficient funding fees for retail banking customers From the beginning of 2022.. According to the Financial Health Network, it is the first US bank of this size to completely reduce these fees, which cost consumers $ 12.4 billion last year alone. 2021 Fin Health Spending Report (PDF).

Capital One instead offers overdraft protection for free. If the customer overdrafts, the bank will bear the costs without assessing the fees. Customers who are currently enrolled in overdraft protection will be automatically enrolled in “overdraft” protection next year. Customers who are not currently registered can sign up for the service at any time.

Capital One said that customers who choose not to register will be denied transactions withdrawing their accounts, but will not be charged a fee.

“The move is expected to generate $ 150 million in annual revenue,” a spokeswoman for Capital One said. “Like our products with no monthly fees or minimum balances, we do not otherwise supplement this revenue. This is an action to undertake for our customers and promote our mission to turn our banks into good. is. “”

I contacted Capital One for more information on how the service works.

This move comes after years of criticism from consumer advocacy groups: Responsible lending center Famous political leaders like Senator Elizabeth Warren. The typical cost of these charges has risen in recent years. Currently, the average price is $ 33.58 per transaction. Bank rate survey..

Both US lawmakers House of Representatives When Senate Bills have been proposed this year to limit overdraft fees to protect consumers, but those bills haven’t moved since they were first introduced.

While other financial institutions are quitting that practice Ally Bank And Discover, Capital One, is the first US bank of its size to eliminate overdraft fees.

Capital One to eliminate overdraft fees next year Source link Capital One to eliminate overdraft fees next year

The post Capital One to eliminate overdraft fees next year appeared first on California News Times.

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