U.S. Bank on policy-changing bandwagon
U.S. Bank is the latest major bank to make changes to overdraft fee policies.
Bank of America, Wells Fargo and J. P. Morgan Chase & Co announced changes to their policies in recent weeks.
Effective during the first quarter of 2010, U.S. Bank will:
- Eliminate overdraft fees when a customer’s account is overdrawn by less than $10, regardless of the number of overdraft transactions that may have occurred.
- Limit the number of overdraft fees to no more than three per day.
- Offer “opt out” ability to customers who prefer that the bank decline or return any transaction on their account, whenever possible, when they are presented against insufficient funds.
- Continue to offer free mobile, email and Internet banking alerts to customers so that they can become more aware of their available balance and manage their spending accordingly.
- Provide new customers the ability to “opt in” to overdraft privileges with U.S. Bank. This choice allows customers to define how they prefer transactions to be handled by the bank when there are insufficient funds in their account.
- Establish an annual cap on the amount of overdraft fees that can be assessed on any single account at the bank.