Bank of America Cuts the $35 Cup of Coffee for Overdrafting Customers
Bank of America, doing its part for the greater good of the country (naturally), announced that it will eliminate overdraft charges on debit card transactions for its customers who can't figure out the value of balancing one's checkbook (see, when you have too many numbers in the left-hand column and not enough in the right-hand column, that means you're screwed).
Late Tuesday, Bank of America announced plans to suspend overdraft fee charges on all debit card transactions, beginning this summer.
"The $35 cup of coffee at Bank of America is gone," Moynihan said, speaking at Citigroup Inc's Financial Services Conference in New York City, referring to the overdraft fee customers could be charged for overdrawing on small transactions.
The move is the latest in a series of changes the bank has made over the last year to clarify its mortgage and credit card agreements with customers since a first curb of overdraft fees last September.
Debit card overdraft charges accounted for 60 percent of all overdraft transactions, the company said on Tuesday.
Again, a debit card implies that one has a debit to pull from.
Bank of America's move is endorsed by our esteemed Treasury Secretary, who would like to see other banks take a cut in revenue to protect the poor, over-leveraged, non-checkbook-balancing consumer. Listen, JDA is all for consumer protection but sometimes you've got to teach the consumer not to live beyond their means and that means charging their asses for using money that they don't have.