Overdraft fees are considered one of the most common and expensive checking account fines; even more so since customers can get dinged more than once in a single day.
Last year, Americans shelled out more than $12 billion in overdraft fees.
In a stunning announcement, Ally Bank said it is eliminating overdraft fees on all accounts.
“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,” Ally Financial CEO Jeffrey Brown said in a statement. “Eliminating these fees helps keep people from falling further behind and feeling penalized as they catch up.”
Will other banks soon follow suit?
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