Citigroup will eliminate overdraft fees this year, becoming the largest lender in the nation to eliminate fees that regulators have criticized.
The bank will eliminate overdraft fees and bounces in the summer, it said in a statement declare on Thursday. It follows smaller lenders, including Capitalize one and Ally Financial, which said last year that it would suspend tolls. Among the nation’s banking giants, Bank of America said it would cut – but not eliminate – overdraft fees from $35 to $10 from $35 this year, while JPMorgan Chase and Wells Fargo have tailored their services for customers is limited.
“Citigroup’s move is aimed at” making the financial system easier and fairer for communities with little money, said Gonzalo Luchetti, managing director of Citi’s personal banking division at Citi. or no financial buffer zone”.
Banking regulators have focused on overdraft operations in recent months. The editor of the act of currency, Michael J. Hsu, has speak fees disproportionately affect the most financially vulnerable customers. Rohit Chopra, director of the Consumer Financial Protection Bureau, said many lenders have become “cracked into overdraft fees” to feed their profits.
The US banking industry’s revenue from overdraft and underfunding was $15.47 billion in 2019, according to a estimate in December from the Bureau of Consumer Affairs.
https://www.nytimes.com/2022/02/24/business/citigroup-overdraft-fees-banks.html Citigroup to get rid of overdraft fees, Biggest Bank to do so