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Citi Becomes First Major U.S. Bank to Fully Ditch Overdraft Fees

Feb. 24, 2022, 4:02 PM

Citigroup Inc. became the first major U.S. bank to fully eliminate overdraft fees as politicians and consumer advocates criticize the charges for their disparate impact on low-income consumers.

The New York-based company will ditch the penalties along with returned-item and overdraft-protection charges by this summer, according to a statement Thursday.

“This latest enhancement is a significant step for Citi as a leader in the banking industry offering the most consumer-friendly overdraft practices,” Gonzalo Luchetti, chief executive officer of U.S. personal banking at Citigroup, said in the statement.

Banks of all sizes have increasingly taken steps to overhaul the fees they charge customers, with Bank of America Corp. and Wells Fargo & Co. last month announcing steps to ease off overdraft charges and ditch non-sufficient fund fees. Regions Financial Corp. and Truist Financial Corp. also unveiledsimilar changes in January.

To contact the reporter on this story:
Max Reyes in New York at mreyes125@bloomberg.net

To contact the editors responsible for this story:
Sally Bakewell at sbakewell1@bloomberg.net

Daniel Taub

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