Ameris Bancorp in Atlanta became the latest bank to curb overdraft fees, announcing several changes designed to reduce charges that disproportionately hit customers with low balances.
The $23.8 billion-asset company said Wednesday that it will eliminate fees charged for nonsufficient funds when a payment is returned, and it will stop charging transfer fees for customers who use savings or other deposits to cover overdrafts.
Ameris will also stop charging separate overdraft fees for balances that remain negative for an extended amount of time — a practice that makes it harder for struggling consumers to bring their accounts positive and avoid further charges.
The changes will take effect May 31, the company said. Overdraft fees of $35 will still apply in situations not covered by the changes, but Ameris said it will charge a maximum of three such fees a day, down from a maximum of five currently.
“These changes are designed to make banking easier and to recognize that many of our customers are working hard to improve their financial standing,” CEO Palmer Proctor said in a press release.
"Also, in line with our purpose to deliver financial peace of mind, Ameris is exploring new ways to improve our digital channels to help customers move and manage their money,” he added.
Ameris collected $11.3 million in overdraft fees last year, down from $12.6 million in 2020, according to its call reports.
The banking industry has recently been
The changes have been led by big banks that can more easily make up the lost revenue with other income streams, but some smaller banks have also announced reforms.
In January, the $3.7 billion-asset First National Bank Texas in Killeen, Texas, which had relied more heavily on overdraft fees than the vast majority of U.S. banks,
