This Bank Is Eliminating Overdraft Fees
The digital banking division of Ally Financial (NYSE: ALLY) said today it is abandoning overdraft fees on all accounts for good. Every customer is eligible, and there are no requirements or restrictions, the company said in a statement.
"Nationwide, more than 80% of overdraft fees are paid by consumers living paycheck to paycheck or with consistently low balances -- precisely the people who need help stabilizing their finances," said Ally Financial CEO Jeffrey Brown. "Eliminating these fees helps keep people from falling further behind and feeling penalized as they catch up."
In 2020, Americans paid $12.4 billion in overdraft fees, according to the 2021 FinHealth Spend Report, which said that 95% of the customers who paid those fees were "financially vulnerable," and were disproportionately Black and Latino. The FinHealth report also found that 43% of the customer accounts paying the fees averaged 9.6 overdrafts last year, resulting in hundreds of dollars per household.
Source Fool.com
