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Citigroup to eliminate overdraft fees this summer -Breaking


© Reuters. FILE PHOTO – The logo of Citibank can be seen in Manhattan on the New York Stock Exchange’s trading floor, New York City (USA), August 3, 2021. REUTERS/Andrew Kelly

By Elizabeth Dilts Marshall

(Reuters) – Citigroup Inc (NYSE:), announced Thursday that it would eliminate any overdraft, returned item, and overdraft protection fees this summer. This is the first major U.S. bank to do so at a moment when the regulators are closely scrutinizing these charges.

Customers who have overdrawn their accounts may be able to bring it under control by using automatic transfers, either from their savings account or from their bank’s line of credit.

The bank stated that it would reject any charges from ATMs or points-of-sale for customers who have not set these up.

Overdraft and Non-Sufficient Funds (NSF) fees are being scrutinized more closely by regulators. They prevent automatic debits from checking account from being funded.

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U.S. Consumer Financial Protection Bureau will be releasing new guidance to curb banks’ reliance upon fees. It is also asking customers for information on overdrafts, as well as other “junk fees”.

Since the CFPB announced it would be targeting these charges, several large banks have modified their overdraft policies.

JPMorgan Chase (NYSE 🙂 Wells Fargo (NYSE:) & Co said they will give customers extra time to bring their account balances above zero, and they are rolling out new short-term lines of credit for customers to access if they cannot come up with the money.

Bank of America (NYSE 🙂 announced that it will stop charging NFS fees, and lower its overdraft fees from $35 to $10 starting in May.

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