Bank of America Alters Overdraft Fees

Bank of America has long been criticized for how the company handles overdraft fees. On Monday, the bank finally decided to do something about it. Their changes to their overdraft fee rules are aimed at helping customers avoid racking up big overdraft penalties.

Starting on Oct. 19, Bank of America won’t charge an overdraft fee when the overdraft is less than $10 and is in that state for less than a day. Overdraft fees will only be maxed out at four times per day and customers will find it easier to opt out of overdraft protection. Additionally, Bank of America will offer a “Clarity Commitment” that clearly explain the bank’s rules and regulation.

Brian Moynihan of Bank of America says that this change is part of a larger transition.

Said Moynihan: “We want customers to have clarity and simplicity in everything they do with us. We started with the Clarity Commitment((R)) in Home Loans. Last week, we announced a simplified credit card offering that includes an easy-to-understand Basic credit card. Today, we are announcing changes to the way customers can manage their day-to-day finances that will help those who need it most right now.”

In June of 2010, more rules will go into place. Those rules include an annual limit on overdraft coverage and the option to opt out when an account is created.

With the economy still struggling, many Americans are facing difficult juggling acts in an attempt to keep their bank accounts above water. This Bank of American overdraft fees change should help.

Bank of America (Image: Flickr)