Digital Banking
Ally Bank nixes overdraft fees
June 14, 2021
Ally Bank, a digital bank division of Ally Financial Inc., has eliminated overdraft fees on all accounts. This is part of the bank's "Do it right" commitment to its customers, according to a press release.
Most customers who pay overdraft fees are financially vulnerable and were disproportionately Black and Latino. In 2020, 43% of financially vulnerable households averaged 9.6 overdrafts.
"Nationwide, more than 80% of overdraft fees are paid by consumers living paycheck to paycheck or with consistently low balances — precisely the people who need help stabilizing their finances," Jeffrey Brown, CEO, Ally Financial, said in the release. "Eliminating these fees helps keep people from falling further behind and feeling penalized as they catch up."
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