Federal Reserve issues new rules restricting overdraft fees on debit cards

Beginning next summer, banks will have to stop charging overdraft fees on debit- and ATM-card transactions without the permission of the cardholder, according to a new rule announced Thursday by the Federal Reserve.

Banks have been taking heat over the fees for months, and Bank of America (BAC) and JPMorgan Chase (JPM), among others, announced in October that they would allow their customers to opt out of overdraft protection, ending practices that consumer advocates disdain.