国际英语新闻：Bank of America to scrap overdraft fees

NEW YORK, March 10 (Xinhua) -- Bank of America said on Wednesday that it would end debit overdraft fees on purchases this summer.

With Bank of America's new policy, debit card purchases that would push checking account overdraft will be declined for new customers beginning in June, and for existing customers starting in early August.

Customers who attempt to withdraw insufficient funds at ATM machines will be noticed that they will be charged 35 U.S. dollars overdraft fee if they choose to proceed.

In the past, banks automatically enroll customers in overdraft protection programs, which charge fees when people spend more than they have in their accounts.

According to a study by the Federal Deposit Insurance Corp., more than 75 percent of banks automatically sign customers up for overdraft programs.

The fees have become a major source of revenue for banks by covering consumer overdrafts, and then offering a short-term loan. Economic research firm Moebs Services reported banks were on track to collect a record 38.5 billion dollars in overdraft fees in 2009.

This decision could cost the bank tens of millions of dollars in annual incomes, and would put pressure on other banks to do the same thing.