Charlotte, NC/ March 9, 2010:  Bank of America announced today plans to stop paying debit card advances that go over the available balance limit.  The practice of paying overdrafts and charging a $35 fee has been an important source of revenue for Bank of America, as for most institutions. 

The new policy will begin for new customers on June 19 and in August for existing debit-card holders. Citigroup Inc. already has a similar policy in place.

"The majority of our customers who overdraw their account do so with everyday debit purchases," said Susan Faulkner, senior vice president of consumer banking for Charlotte, N.C.-based Bank of America. "They're doing this unknowingly, because they aren't aware that they are about to overdraft."

Since the bank doesn't have the ability to notify the customer when they're at the register and give them the chance to agree to a fee, it will simply reject such transactions.

Also, BofA has announced that they are paying a $75 bonus to open their new "My Access" checking account.  Terms include the requirement that $125 must be deposited into the account within 30 days of opening the account, and that the bank has up to 90 days to payout the bonus.