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Chase, Bank of America Overhaul Overdraft Programs

Since it’s passing, the CARD Act has drawn both criticism and praise from just about everyone. Some were upset about the tightening of credit card approval requirements for college students. Others celebrated rule changes that required companies to apply payments to the highest interest rate balances. Some warned that credit card companies would change their business practices and make credit cards less accessible, since they would be less profitable. The issue has been covered here when Bargaineering broke the story that Citi would start charging an annual fee [3] unless cardholders met a certain spending criteria.

Both Chase and Bank of America announced that they would be overhauling their overdraft policies. It’s clear they’re doing this to get ahead of the curve on the legislation but couching in “consumer friendly” terms. Some changes include:

Update: Wells Fargo / Wachovia are joining the party [4] in offering the option to opt out ofoverdraft protection and no fee if the overdraft is less than $5.

Why they’re doing this is irrelevant, it’s just good that they’re doing it.

Chase and Bank of America lower overdraft fees [5] [MarketWatch]

(Photo: rosengrant [6])