Bank of America (NYSE: BAC) To End Overdraft Fees on Debit CardsBank of America (NYSE:BAC) customers may soon lose the ability to spend more than the cash they hold in their debit cards, a step that may become common place after new regulations limit overdraft fees.
Rules that have been set forth by the Federal Reserve that ban banks from charging such fees without first getting the customer's permission are due to take effect July 1.
However, Bank of America intends to take the ban a step further, and simply will not allow purchases to go through if the account doesn't contain sufficient funds.
Regarding ATM transactions, BofA customers who try to withdraw more cash than their balance permits will have to agree to pay a $35 overdraft fee prior to receiving the cash.
"The majority of our customers who overdraw their account do so with everyday debit purchases," said Susan Faulkner, senior vice president of consumer banking.