JPMorgan Chase customers will see a reprieve from checking-account overdraft fees on debit-card purchases that are less than $5.
Beginning June 22, the bank will waive a $34 overdraft fee if a customer’s account is overdrawn by a transaction that is $4.99 or less, The New York Times reports.
Chase’s new policy is part of a settlement of a nationwide class-action lawsuit against Chase and about 30 financial lenders that was settled in May 2012.
The lawsuit alleged that banks reordered debit transactions from the most expensive to the least expensive, regardless of the date of the transaction. Such a practice could trigger multiple overdraft fees on an account.
Consumers Digest reported on this practice in “License to Steal: Outrageous Bank Fees and Business Practices” in the July/August 2010 issue.