Banks and Credit Unions are Changing the Way Super High Overdraft Fees Are Handled |
During a Senate committee hearing in late May, Warren, D-Mass., Vehemently asked Dimon, “Without this overdraft, would your bank have been in financial trouble?”
Dimon responded, “We waived the fee for customers on demand if they were stressed out due to COVID. “
A spokesperson for Chase said the bank removed fees on more than one million deposit accounts, including overdraft fees, last year when customers said they were having trouble – without ask questions. The overdraft fee is $ 34 at Chase, and customers can be charged a maximum of three Chase overdraft fees per day.
Overdraft fees generated an estimated $ 31.3 billion in 2020, if you include major banks, community banks, savings banks, credit unions, and fintech companies, which provide services. financials in digital form, according to financial research firm Moebs Services Inc.
This is almost 10% less than the previous year. But overdraft receipts could rebound as some banks are no longer willing to waive these fees.
An overdraft is triggered when consumers do not have enough money in their account to cover a bill or make a payment, but the bank or credit union still pays it. Consumers then have to make up this shortfall and pay a fee, often $ 30 or $ 35 apiece.
Since many banks charge multiple overdraft fees in a day, the costs can add up.