Bank of America is to offer customers instant overdrafts by sending them a text message when a debit card transaction takes them into the red.
Most implementations of overdraft protection in the US have thus far swung between two extremes: Grant overdraft against a hefty fee even when the customer hasn't asked for it, or decline overdraft even if the customer is willing to foot the bill. Props
to BofA for striking the middle ground and implementing a solution at the level of the individual transaction. This also marks a victory for consumer rights protection groups who were equally critical of both the pre- and post-RegE regimes last year and have
been campaigning for consumer choice at exactly this granularity since then.
© Finextra Research 2013