JPMorgan warns customers they may have to pay for free checking accounts
Why might JPMorgan charge fees on checking accounts?
JPMorgan might charge fees on checking accounts due to new regulatory rules that cap overdraft and late fees, as warned by Marianne Lake, CEO of consumer and community banking at JPMorgan3. The bank plans to pass along increased expenses to customers, which could end free services such as checking accounts and wealth management tools. Other banks may follow suit.
What prompted the new fee caps by Washington regulators?
The new fee caps by Washington regulators were prompted by the Consumer Financial Protection Bureau's decision to impose an $8 cap on credit-card late payment fees and a $3 cap for over-drafting bank accounts2. This decision, made in March, is currently being appealed by a coalition of bank industry groups.
What are the specific caps set by the Consumer Financial Protection Bureau?
The Consumer Financial Protection Bureau set caps at $8 for credit-card late payment fees and $3 for over-drafting bank accounts.