Regions Announces Elimination of NSF Fees, Reduced Overdraft Charges
Regions is latest in series of banks announcing changes to overdraft policy
Birmingham-based Regions Bank announced this week it will soon eliminate non-sufficient funds fees and reduce overdraft charges. The move comes amid a flurry of banks taking steps to make banking more consumer friendly.
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New Policy Will Also Limit Overdraft Fees
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Move Comes Amid Fee Reform Sweeping Industry
In the announcement, Regions specifically highlighted the following forthcoming policy changes:
- Overdraft Protection Transfer Fees: These fees will be eliminated by the end of the first quarter of 2022. Such fees are incurred when money is transferred from linked accounts to cover overdrafts.
- Eliminating Non-Sufficient Funds Fees: By the end of the second quarter of 2022, Non-Sufficient Funds Fees, also known as Returned Item Fees, will no longer be charged.
- Lowering Caps on Overdraft Fees: Also by the end of the second quarter, Regions will further reduce the number of Paid Overdraft Item Fees that can be charged per day on consumer banking accounts — including personal1 checking, money market, and savings accounts — as well as non-analyzed business checking, money market, and savings accounts. The new limit on Paid Overdraft Item Fees will be three per day.
These changes should work to reduce the total number of fees charged to customers. It should be noted that these changes will still allow Regions customers to be charged fees for up to three items per day.
The move by Regions and other banks comes at a time when regulators such as the Consumer Financial Protection Bureau…