Bank of America Scraps Another Fee

Bank of America (BAC) has scrapped a plan to offer a $35 overdraft protection fee on debit card purchases after they are rejected at the point of sale.

The service would have involved Bank of America sending a text message to its customers after a purchase was rejected for insufficient funds, giving the option of going ahead with the purchase for a $35 fee.

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The bank had said in May it planned to test the concept in trials, though bank spokeswoman Anne Pace told TheStreet the bank dropped the idea over the summer. She would not explain the rationale for the decision, however.The Boston Globefirst reported on the decision Thursday.

Bank of America drew lots of negative attention with a recent plan to charge customers $5 monthly for debit card purchases. Other banks, including Wells Fargo (WFC), Regions Financial (RF), JPMorgan Chase (JPM), and SunTrust (STI), had considered similar fees, but called them off.

Eventually, Bank of America called off its fee as well, amid signs it was hugely unpopular with customers. Pace said the decision not to test the $35 point-of-sale overdraft fee came well ahead of the decision to end the $5 debit card fee.