Citigroup to stop charging overdraft fees
Citigroup Inc. said Thursday it plans to stop charging overdraft fees, returned item fees, and overdraft protection fees by this summer. The New York-based financial firm said it will be the only top five U.S. bank, based on assets, to completely eliminate these fees. The bank said the move represents its commitment "to increase financial inclusion in underserved communities." Citi said it has been minimizing overdraft fees for 20 years and its overdraft revenue currently ranks among the lowest among its competitors. Gonzalo Luchetti, CEO of U.S. personal banking at Citi, said the overdraft fee elimination marks "a significant step" as part of its efforts to offer "the most consumer-friendly overdraft practices." Shares of Citi fell 4.5% on Thursday amid a broad selloff in equities. The S&P 500 is down 2.2%.
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