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Capital One drops all overdraft fees, latest bank to do so – Pittsburgh, Pennsylvania

Pittsburgh, Pennsylvania 2021-12-01 13:44:00 –

Capital One announced on Wednesday that it will eliminate all overdraft fees. This is the latest bank of the year and one of the largest financial institutions avoiding long-standing practices. Virginia-based banks have said they will continue to allow customers to overdraft, but will no longer charge fees to do so. Eligible customers can always opt for free overdrafts, according to banks. However, Fairbank added that it will continue to monitor its clients’ banking operations to ensure that their clients are not practicing unhealthy financial practices. Customers also need to show stable deposit patterns in order to access new free practices. “We will investigate customer behavior to prevent frequent overdrafts,” Fairbank said in a statement. “We don’t want to rely on spending money that our customers don’t have.” The average overdraft fee for 2021 is about $ 35. In 2019, it is estimated that US banks raised $ 15.5 billion from their customers for withdrawing their accounts. Capital One predicts that the latest decision will result in an annual loss of $ 150 million. Capital One is the sixth largest retail bank in the United States. The announcement was made after Ally Financial Inc., a Detroit-based bank, reported that it would stop charging overdraft fees of less than $ 100. , Associate Director, National Consumer Law Center. “This move by Capital One will bring tremendous benefits to the most vulnerable consumers. It is important to continue our efforts to make the banking system more comprehensive and fair to all.”

Capital One announced on Wednesday that it will eliminate all overdraft fees. This is the latest bank of the year and one of the largest financial institutions avoiding long-standing practices.

Virginia-based banks have said they will continue to allow customers to overdraft, but will no longer charge fees to do so. According to the bank, eligible customers can choose to overdraft for free at any time.

Related video above: Daily banking fees hit minorities, and millennials were hit hardest.

Richard Fairbank, CEO of Capital One, said the move was part of the company’s efforts to bring banks back to simplicity and humanity.

However, Fairbank added that it will continue to monitor its banking operations to ensure that it does not practice unhealthy financial practices. Customers also need to show stable deposit patterns in order to access new free practices.

“We will investigate customer behavior to prevent frequent overdrafts,” Fairbank said in a statement. “We don’t want to rely on spending money that our customers don’t have.”

The average overdraft fee for 2021 is approximately $ 35. In 2019, it is estimated that US banks raised $ 15.5 billion from their customers for withdrawing their accounts. Capital One predicts that the latest decision will result in an annual loss of $ 150 million.

Capital One is the sixth largest retail bank in the United States. The company’s announcement comes after Ally Financial Inc., a Detroit-based bank, has reported that it will stop charging fees for overdrafts under $ 100.

“Capital One’s complete elimination of overdraft and NSF fees is a milestone for American families,” said Lauren Sanders, associate director of the National Consumer Law Center. “This move by Capital One will bring tremendous benefits to the most vulnerable consumers. It is important to continue our efforts to make the banking system more comprehensive and fair to all.”

Capital One drops all overdraft fees, latest bank to do so Source link Capital One drops all overdraft fees, latest bank to do so

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