Regions, Truist Join Banks Redoing Overdraft Fees on Backlash
(Bloomberg) -- Regions Financial Corp. is joining the ranks of lenders overhauling their overdraft fees as politicians, regulators and consumer advocates criticize the charges.
The Birmingham, Alabama-based bank will eliminate its non-sufficient funds fees and overdraft protection transfer fees, according to a statement Wednesday. The bank also said it would limit the number of overdraft fees that customers can be charged in a single day to three.
The changes follow an announcement Tuesday that Truist Financial Corp. will roll out new accounts this summer without overdraft fees and phase out some other charges, including overdraft protection transfer fees. Bank of America Corp. and Wells Fargo & Co. both said last week that they would do away with non-sufficient funds fees and ease off of overdraft charges, while U.S. Bancorp said in a statement Wednesday that it eliminated certain non-sufficient funds charges and will adjust other fee-related policies.
The moves come after lawmakers including Democratic Senator Elizabeth Warren criticize the charges as abusive, and banks face competition from financial-technology firms such as Chime Financial Inc. Chime started spotting customers if they went overdrawn in 2018, and Chris Britt, the fintech’s co-founder and chief executive officer, has said he expects the industry to abandon the expenses completely.
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