Top U.S. retail banks to pause overdraft collections as stimulus program hit  

The highest U.S. retail banks will make some adjustments on Thursday to supply aid to its customers with negative balances on their checking accounts. These banks want to make sure that stimulus payments from the government will be received by its customers.

Each citizen must receive funds of as much as $1,200 as a part of the Congress’ $2.2 trillion help bundle. It is meant to curb the impact of coronavirus to U.S. that shuttered companies and made more than 10 Million people jobless.

This week, people began receiving the first wave of the payments which were automatically deposited into their checking accounts.

JPMorgan Chase & Co, Bank of America Corp and Wells Fargo & Co decided to set aside the collection on negative balances and offer a temporary provisional credit for 30 days. Without the relief, customers will be charged with a high-cost credit fees.

The number of affected people changes every day, especially when it is the season where customers need to pay their bills or sometimes on their paydays.

“We hope this gives them a chance to catch their breath,” JPMorgan spokeswoman Anne Pace stated.

Chase and Wells Fargo will not charge fees for non-customers who will cash their checks. For those people who need to, Chase and Wells Fargo won’t charge fees.

“We encourage customers who receive a stimulus payment check to use mobile deposits or ATMs to deposit the checks. The goal is to get money in consumers’ hands as easily and quickly as possible,” Wells Fargo said in an interview.

 

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