Capital One to eliminate overdraft fees

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Capital One to eliminate overdraft fees

The bank said it would eliminate all overdraft fees and bring humanity back to banking after the holidays came early for Capital One customers.

Richard Fairbank, Capital One's founder and CEO, said that the bank account is a cornerstone of a person's financial life. It is how people get their paycheck, pay bills and manage their finances. Overdraft protection is a useful feature and can be an important safety net for families. We are excited to offer this service for free. On the launch date in early 2022, all customers who are currently enrolled in overdraft protection will automatically be converted to No-Fee Overdraft.

Customers who are not currently enrolled can enroll at any time. For customers not enrolled, transactions that would overdraw an account will be declined and no fees will be assessed.

The Consumer Financial Protection Bureau released data on overdraft fees on Wednesday, noting revenue from the practice reached an estimated $15.5 billion in 2019.

JPMorgan Chase, Wells Fargo, and Bank of America accounted for 44% of the total.