'It's a penalty for being poor': Capital One slashed overdraft fees. Why haven't other banks?

Banks are literally banking on you not having enough money in your account to cover your expenses. For many banks, that means they get to hit you up with an overdraft fee that typically costs $30 to $35.

In 2019, banks charged U.S. customers $15.47 billion in overdraft and non-sufficient funds fees, according to a report published Wednesday by the Consumer Financial Protection Bureau. “‘Rather than competing on quality service and attractive interest rates, many banks have become hooked on overdraft fees to feed their profit model’”

Wells Fargo said it offers accounts with no overdraft fees. A JPMorgan spokesperson told MarketWatch that the CFPB’s data does not reflect changes it made earlier this year to “significantly” increase “the amount a customer can overdraw before overdraft fees are charged.” The bank also eliminated its insufficient funds fee earlier this year, the Wall Street Journal reported.

HayyanAllawati Banks may take advantage of this aspect to increase their revenues after economic changes

If you don't think it's a penalty for the poor then you're only speaking from privileged.

Go with a credit union. Better rates for loans and for savings.

A penalty for being poor or a penalty for spending someone else’s money without their permission?

United States Latest News, United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Capital One says it is ditching all consumer overdraft fees, giving up $150 million in annual revenueBanks have been under pressure from consumer advocates to eliminate overdraft fees because they often punish those who can least afford to pay them. Hugh_Son Wow. Humans again !! Hugh_Son
Source: CNBC - 🏆 12. / 72 Read more »

It Hasn't Snowed In Denver Yet This Winter (Or Fall)Yes, that's a first for the Colorado capital since record-keeping began. And here in Arizona we're anywhere from 10-15 degrees above normal in our daily temps, with highs in the mid-80's the last few days. OK whats your point
Source: HuffPostWomen - 🏆 27. / 68 Read more »

'It's going to be very obvious that every bank needs to become a crypto bank,' says CEO of bank to nab 1st federal charter for digital assets‘It’s going to be very obvious that every bank needs to become a crypto bank,’ says CEO of bank to nab 1st federal charter for digital assets Let’s go $MS
Source: MarketWatch - 🏆 3. / 97 Read more »

Grimes Falls for 'Player of Games' in New SongIt’s the musician’s first proper single following 2020’s Miss Anthropocene
Source: RollingStone - 🏆 483. / 51 Read more »

NFL player Everson Griffen opens up about mental health: 'It's true I am bipolar'After an alarming incident in late November, the Minnesota Vikings defensive end is opening up about his mental health. That's about as BRAVE as they come. What we saw in the video was more than bi polar disorder. I would have to suspect drugs played a heavy role and he went into some sort of psychosis. He was barricaded in his house for 13 hours ... thats not bi polar disorder. This IS a strong man. Congrats to him for being open! 👏👏👏👏👏
Source: TODAYshow - 🏆 389. / 55 Read more »