As per reports, JPMorgan Chase & Co (JPM) allows customers more space on overdrafts before charging fees, giving up revenue in a bid to attract customers and to keep up with competitors. The bank informed that beginning next year it will allow customers a full day to restore overdrawn balances and will also allow them to tap funds from direct deposits of paychecks two days early.
The bank’s decision comes after Capital One Financial Corp informed it will stop charging accounts for not having sufficient funds to cover drafts, a practice that is under scrutiny from the U.S. Consumer Financial Protection Bureau and other officials.
As per analysts, about 1% of JPMorgan’s revenue has come from overdraft fees. In August, JPMorgan relieved charges and eliminated fees for bounced checks and it allowed customers to overdraw their accounts by $50 before charging to cover the transactions.
JPMorgan Chase & Co (JPM) is a global financial service leader in investment banking, financial services for consumers and businesses, financial transaction processing, asset management, and commercial banking. To learn more about JPMorgan Chase & Co. (JPM) and to continue to track its progress please visit the Vista Partners JPMorgan Chase & Co. Coverage Page.
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