Citigroup just became the biggest US bank so far to get rid of overdraft fees, which consumer advocates say disproportionately hurt low-income customers
- Citigroup is eliminating
overdraft fees, becoming the biggest US bank to do so thus far.
- Overdraft fees disproportionately affect vulnerable and low-income people, consumer advocates say.
The firm, which is the fourth-largest US bank by assets, announced Thursday that it plans to toss overdraft fees, returned item fees, and overdraft protection fees by this summer.
"This latest enhancement is a significant step for
Consumer advocates have long said overdraft fees disproportionately affect vulnerable or low-income people, piling extra charges onto those who are least able to afford them.
Besides Citi, many other banks have eliminated or reduced some overdraft fees lately or added grace periods. Last month, Bank of America said it will lower its overdraft fees from $35 to $10, starting in May. In December, Capital One announced it's eliminating overdraft fees for consumer banking customers.
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