Posted: Mar 10, 2010 7:21 AM by Associated Press
It could be the beginning of the end of overdrawn accounts linked to debit cards.
Bank of America customers will soon be unable to spend more than they have in such accounts in a step that may become a common move ahead of new regulations limiting overdraft fees.
Rules set by the Federal Reserve that will ban banks from charging such fees, without first getting permission from the customer, are set to take effect July 1.
But Bank of America is going a step further than the regulations require. It will simply no longer allow debit card purchases to go through if there isn't enough money in the account.
For ATM transactions, customers who try to withdraw more than their balance will have to agree to pay a $35 overdraft fee before they can get the money.