Banks cut overdraft fees in attempt to halt new regulation

Some banks have voluntarily cut back on overdraft fees in the hope of preventing more government regulation of their business practices. Bank of America (BAC) and JP Morgan Chase (JPM) are leading the effort to stall bills now pending in Congress to limit the use of overdraft fees.

Both banks announced that they will allow customers to opt out of overdraft protection services and avoid the possibility of paying overdraft fees. JP Morgan also will cancel fees charged on accounts overdrawn by $5 or less. Bank of America went a little further and will not charge fees on accounts withdrawn by $10 or less. How often have you made a $5 or $10 error in calculation when balancing your checkbook?