Capital One to end overdraft fees

The holidays came early for Capital One customers, as the bank announced that it would eliminate all overdraft fees and return “humanity” to banking.

tape protection the last they change they change %
memory Capital One Financial Corporation. 140.81 +0.35 + 0.25%

“A bank account is the cornerstone of anyone’s financial life,” said Richard Fairbank, founder and CEO of Capital One. “It’s how people get paid, pay their bills, and manage their finances. Overdraft protection is a valuable and convenient feature and can be an important safety net for families. We’re excited to offer this service for free.”

what do you know

  • Customers can choose whether or not they will receive overdraft protection.
  • All customers currently enrolled in overdraft protection will be automatically converted to a no-fee overdraft on the launch date in early 2022.
  • Eligible customers who are not currently registered can register at any time. For unregistered customers, transactions that would overburden an account will be rejected and no fees will be assessed.

Source: Capital One

On Wednesday, the Consumer Financial Protection Bureau released new data on overdraft fees noting that revenue from the practice reached an estimated $15.5 billion in 2019.

tape protection the last they change they change %
JPM JPMORGAN CHASE & CO. 160.03 +1.22 + 0.77%
WFC Wells Fargo & Company 48.26 +0.47 + 0.99%
buck Bank of America Corp. 44.64 +0.16 + 0.36%

JPMorgan Chase, Wells Fargo and Bank of America accounted for 44% of the total.

Source: Capital One

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