MINNEAPOLIS, May 10, 2010 (BUSINESS WIRE) --U.S. Bank has introduced a new overdraft policy that complements changes
it made earlier this year and builds on the company's commitment to
provide customers a range of choices in how they manage their accounts.
The new policy includes a reduced fee of $10 for transactions that are
$20 or less and drawn on an account that has a negative balance. The $10
fee is far lower than what is currently offered by any other major bank.
The change takes effect in August.
"U.S. Bank is committed to doing what's right for the customer. We began
implementing changes last fall based on what we heard from customers,
all of which were centered on giving them the power to choose what's
right for them," said Richard Davis, chairman, president and chief
executive officer of U.S. Bancorp. "This approach is very consistent
with how we approach our customer relationships. Customer service is
part of who we are, and we are confident this policy will increase
The new overdraft policy is part of the on-going review of deposit
product offerings that U.S. Bank began last year and that is expected to
continue as the industry landscape is recast.
In September 2009, prior to proposed regulatory changes, U.S. Bank
announced measures to curb the impact of overdraft fees, including capping
the number of overdraft fees to three in one day, waiving
fees if the account is overdrawn less than $10 and expanding same-day
availability for most deposited items.
This summer, customers will have the power
to choose whether they want their bank to decline transactions
made with their debit cards or at the ATM if their account is
overdrawn or would create a negative balance (referred to as "opt in"
or "opt out.")
Now, in addition to the changes already in effect, U.S. Bank customers
who make a transaction on an account that is overdrawn (including
checks, automatic withdrawals, ATM and check card transactions), will
see a reduced fee of $10 for
transactions $20 or less, $33 for anything over $20. The $10
price point is far lower than any other major bank in the industry.
U.S. Bank provides customers with multiple ways to avoid overdrafts,
including its industry-leading set of overdraft protection options, such
as linking another deposit account, credit line or credit card to the
checking account to cover overdrafts when they happen. U.S. Bank also
encourages customers to use the free text or email alerts that it offers
to better monitor account balances and to know when certain size
transactions move through their accounts.
"Our research indicates that clients want the power to choose how their
overdraft debits are handled. We know that some would rather that we
reject their overdraft debits, and we will give them that option. But we
also know some clients want different choices, which is why our approach
is to present all options clearly and let them choose the path that
serves them best," Davis said.
U.S. Bancorp (NYSE: USB), with $282 billion in assets as of March 31,
2010, is the parent company of U.S. Bank, the fifth largest commercial
bank in the United States. The company operates 3,025 banking offices in
24 states and 5,312 ATMs and provides a comprehensive line of banking,
brokerage, insurance, investment, mortgage, trust and payment services
products to consumers, businesses and institutions. Visit U.S. Bancorp
on the web at usbank.com.
SOURCE: U.S. Bank
Steve Dale, Media Relations, 612-303-0784
Teri Charest, Media Relations, 612-303-0732