Wells Fargo has unveiled plans to launch two bank accounts with capped overdraft fees to regain public trust in the wake of a series of scandals.
The first new account, which will cap spending to the amount available in the account, will exclude checks. It will have no overdraft fees and cost $5 per month.
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The second account will charge customers limited overdraft fees and come at the cost of $10 per month. It will allow customers to write checks and the overdraft fee is capped at $1 per month.
Additionally, using the bank’s overdraft rewind feature, customers can make a direct deposit into the bank to waive the insufficient funds’ fees from previous day’s transactions.
Both the accounts are expected to be made available by 2021.
Wells Fargo consumer and small business banking CEO Mary Mack said: “We know many consumers are seeking low-cost bank accounts that help them avoid overspending and keep to a budget, as well as access to all our mobile, online, ATM, branch and phone banking services.
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By GlobalData“These new offerings will help us satisfy the financial needs of more customers and further expand access to mainstream banking services.”
The new offerings are a part of the bank’s efforts to regain market share after fake-account creation scandals.
The scandals revealed that branch employees opened millions of potentially fake accounts to hit sales goals.
This resulted in hundreds of thousands of dollars in overdraft fees charged by the bank to the customers.
Last month, Wells Fargo agreed to pay a penalty of $3bn to DOJ and SEC to settle a probe into its fake-account creation scandal.
Recently, reports emerged that Wells Fargo is planning to eliminate close to 700 jobs in Manila, the Philippines in tech overhaul.
The bank plans to move a portion of these jobs to India where almost 12,000 tech employees are already working, a bank’s spokesman Peter Gilchrist told Bloomberg.
In November last year, Wells Fargo was ordered to pay $200m in damages after it was found guilty of infringing United Services Automobile Association (USAA) patents.
