12/01/2021

Capital One is Ditching All Consumer Overdraft Fees

This represents $150 million in lost annual revenue

Capital One says it is eliminating all overdraft fees for retail banking customers.

It is the largest U.S. bank yet to end the industry practice of charging customers a hefty fee, typically $25 to $35 in each instance, for allowing transactions that exceed a customer's balance, according to the McLean, Virginia-based lender. The move will cost the bank an estimated $150 million in lost revenue per year, according to a company spokesperson.

"We will completely eliminate overdraft and non-sufficient funds (NSF) fees for all Capital One consumer bank customers," said CEO Rich Fairbank to the bank's employees Wednesday in a memo, calling it a "first for major banks in the U.S."

Please select this link to read the complete article from CNBC.