Capital One Will Eliminate Overdraft Fees for All Customers in 2022
Yesterday, Capital One announced that it will onlinepletely eliminate all overdraft and non-sufficient fund (NSF) fees for its banking customers.
Capital One is one of America’s largest retail banks, and the first top-ten bank to remove these charges for all of its customers. Smaller banks such as Ally and online-only banks like Alliant have also recently eliminated overdraft fees.
Consumer advocates hope that this is the start of a promising new trend. Historically, banks have depended on overdraft and NSF penalties to feed their profit model. These fees earned the industry over $15 billion in 2019, and it’s often the banks’ most vulnerable customers who pay the price.
“The bank account is a cornerstone of a person’s financial life. It is how people receive their paycheck, pay their bills, and manage their finances. Overdraft protection is a valuable and convenient feature and can be an important safety net for families. We are excited to offer this service for free. Eliminating overdraft fees is another step in our effort to bring ingenuity, simplicity, and humanity to banking.” – Richard Fairbank, Capital One’s Founder and CEO
Capital One customers can choose whether or not to access the bank’s free overdraft protection. Customers currently enrolled in overdraft protection will be automatically converted to the bank’s new No-Fee Overdraft on its launch date in early 2022.
Eligible customers who are not currently enrolled can enroll at any time. For customers not enrolled, transactions that would overdraw an account will simply be declined and no fees will be charged.
“Capital One’s onlineplete elimination of overdraft and NSF fees is a landmark moment for American families. This move by Capital One will have tremendous benefits for the most vulnerable consumers. It’s critical we keep working to make the banking system more inclusive and fair for all.” – Lauren Saunders, Associate Director, National Consumer Law Center
Head on over here to learn more about these changes to Capital One’s overdraft policy.
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