Capital One To Become First
Major US Financial Company, to Ditch Overdraft Fees.
The company announced
the end of overdraft fees for
its retail customers on Dec. 1.
We will completely eliminate overdraft and non-sufficient funds (NSF) fees for all Capital One consumer bank customers, Rich Fairbank, Capital One CEO, via CNBC.
In doing so, the company forgoes nearly $150 million in yearly revenue accrued by such fees.
Overdraft fees have been criticized by customers and consumer groups for years.
The advent of fintech companies that offer similar account services as major banks but without the threat of overdraft fees.
likely plays a role in Capital One's
business model shift.
While Capital One maintains fewer physical branches than other major U.S. banks, .
the company has more than
70,000 ATMs around the country. .
The banking industry accrued
more than $14 billion in
overdraft fees in 2019 alone.
Bank of America and PNC Bank recently incorporated features that make it less likely for a customer to overdraft on their accounts.
But neither company has revealed plans to
end overdraft fees completely.
Wells Fargo recently
issued a noncommittal
statement on the issue.
[Wells Fargo] continues to evaluate our products and services, including overdraft services, as the
marketplace evolves, Wells Fargo Statement, via CNBC.
The policy shift for Capital One customers kicks in beginning in the new year