Just received a message from BofA explaining some changes they're making regarding overdraft issues. Its first paragraph says: "We're committed to helping with your long-term financial wellness — that's why we want to make sure you've heard about these significant changes to reduce or eliminate certain fees on personal and small business checking accounts."
They go on to reiterate some changes made earlier this year, then outline new, additional changes that will be coming. Among other things, they've eliminated their fees for NSF checks, i.e., if a check you write is returned for insufficient funds, BofA willl no longer charge a fee. Next month, they'll eliminate fees for overdraft protection transfers. And some other stuff.
It sounds like they're trying to help customers who've had difficulties, perhaps due to the pandemic. I can already hear the cynics saying 'it's all for publicity!", but, whatever. Although I haven't had an NSF check in decades, so this really doesn't affect me, I think it's a nice move. I've heard of other banks making similar changes, too. I know that when my husband and I were flat broke and kept getting hit with double fees--one from the bank the NSF check was written on, then another from the company it was written to--climbing out of that never-ending hole was horrible. These changes should help some people get back on track a little easier.
Capital One 360 recently did the same. I appreciate it, because I was just digging out of a hole but I'm still not sure it was the right option.
Now there is no consequence for over drafting or improperly managing your finances and those fees are part of what pushed me to do better, especially when CO 360 shows you how much you've paid each year cumulative.
It's nice to not have the fees, but the fees push you to understand that going into OD or NSF is not good financial management.
@lns1976 wrote:Capital One 360 recently did the same. I appreciate it, because I was just digging out of a hole but I'm still not sure it was the right option.
Now there is no consequence for over drafting or improperly managing your finances and those fees are part of what pushed me to do better, especially when CO 360 shows you how much you've paid each year cumulative.
It's nice to not have the fees, but the fees push you to understand that going into OD or NSF is not good financial management.
Very good point, and I'll admit to having had the same thoughts. But, as I see it, it's only on the bank's side where fees will be eliminated--we have no way of knowing [with zillions of companies] what the payees will do. They will likely continue charging fees, but I don't know.
I know that when we were at our absolute worst financially, every single NSF charge was like a kick in the gut. Back then, I think the bank's fee was like $15 (I could be wrong), but whatever it was represented money we didn't have. Then adding that to the $X charged by the payee, it just seemed impossible to ever claw our way out. And we couldn't. We tried. I mean hard. And for a long time. But fee on top of fee on top of interest on top of late charges on top of....everything....it created an impossibly-deep hole that we couldn't dig out of. And we weren't lazy bums. As soon as I was well enough to go back to work, I did. My husband and I both worked two jobs at times. It's not like we weren't trying. Back then, I'd think "if we just didn't have to pay that $X fee..." because it would've really helped. I definitely see your point and I think some people will glean from this change exactly what you're saying, but for other people it will make a real, tangible difference in their financial life.