Dialing Back Service Fees in 2024

Bankers, facing heightened scrutiny and collection challenges, are removing certain overdraft charges. We also review our most-read articles from the past 12 months.

Good morning, Bank Slaters!

I’m back from a week in Tennessee — attending SRM’s International Advisory Board meetings and then our holiday party (where I may or may not have performed karaoke). I also blogged about the regulatory landscape in 2024. Now I am ready to stay home for a few weeks.

Let’s talk about service charges for deposit accounts.

I’ve been talking to bankers about this topic for a while, asking them what changes they’re planning and what they expect examiners to focus on in the next year.

Bankers are bracing for intense scrutiny of overdraft fees given recent regulatory action and legal settlements involving banks such as Atlantic Union Bankshares in Virginia, Regions Financial in Alabama, and Gate City Bank in North Dakota.

Many banks have expedited reforms, reflecting expectations that examiners will look back a year or more to review policies and see what fees were being charged.