Bank of America announced Monday that it will reduce overdraft fees and overhaul checking account options, amid a growing backlash over banks’ policies on overspending.
Overdraft fees generate billions of dollars per year, and consumers and lawmakers alike have called for banks to revamp their penalties as financial system reform remains a priority.
Beginning Oct. 19, Bank of America (BAC, Fortune 500) says it will allow customers to opt out of the ability to outspend their accounts, and it will no longer charge fees for more than four items per day or on overdrawn balances of less than $10.
In June, the bank will limit the number of times in a year consumers can overdraw their accounts using debit cards in stores, and new customers will be able to opt out of overdrafts when they open their accounts.