Why Your Checking Account May No Longer Be Free
Why Your Checking Account May No Longer Be Free
Ana Altchek Fri, July 5, 2024 Business Insider
Chase Bank's boss warned that new federal fee caps could make everyday banking more expensive.
Marianne Lake said the bank is planning to pass the pain of their lost profits on to customers.
Some new costs may be placed on now-free services like checking accounts and financial tools.
Everyday banking might be about to get more expensive for consumers.
Marianne Lake, the CEO of consumer and community banking at Chase Bank, said federal regulations to cap overdraft and late fees would take a bite out of the company's bottom line. And she warned that making up that loss would be passed on to consumers, according to a report from The Wall Street Journal.
Lake said the changes would be "broad, sweeping, and significant," the report said.
Some of those costs would be tacked onto services that have been free so far, like checking accounts and financial planning tools, the report said.
Business Insider reviewed a Chase presentation that covered the expected impact of proposed regulations. The presentation estimated that two out of three consumers would have to pay a fee for checking accounts if the cap went through.
Lake also said those impacted will be the ones "who can least afford to be" and credit access will also be more challenging.
Some of the regulations include a proposed $8 cap on late credit card payment fees and a $3 cap for overdrafting bank accounts. The limit is part of President Joe Biden's crackdown on hidden fees.
The Consumer Financial Protection Bureau estimated that about 45 million people are charged credit card late fees annually, and the change could save those people up to $220 a year.
TO READ MORE: https://www.yahoo.com/finance/news/jpmorgan-warns-86-million-customers-150827155.html
JPMorgan Warns 86 Million Customers They Might Have To Start Paying For Their Bank Accounts
Chris Morris Fri, July 5, 2024
Chase Bank customers could see some additional charges in the not too distant future.
The Wall Street Journal reports the country’s biggest retail bank is warning that it might begin charging customers for their accounts. That would impact some 86 million customers.
The potential charges, says Marianne Lake, CEO of consumer and community banking at JPMorgan, are a result of new regulatory rules that cap overdraft and late fees. Lake says Chase will be passing along those increased expenses to customers, which would put an end to now-free services such as checking accounts and wealth management tools. And she says she expects other banks will follow suit.
This story was originally featured on Fortune.com
TO READ MORE: https://www.yahoo.com/finance/news/jpmorgan-warns-86-million-customers-150827155.html