Banking

BoA Slashes Overdraft Fees

As pols threaten big reforms.

Looks like Bank of America will have to find a new way to scrape together a profit: Getting ahead of credit-card reform in the U.S. Congress, the bank joined J.P. Morgan in overhauling overdraft fees and practices that have been criticized by consumer-protection agencies. Reversing course, Bank of America said it will cap the fees on customers who overdraw their accounts, and it will not charge any fee on overdrafts of less than $10 in one day. It will limit to four the maximum number of fees per day, from a pervious cap of 10. The bank will also allow customers to opt out of overdraft protection, meaning that they’ll be turned away at the register rather than given a negative balance and a fee.