Flagstar Bank Eliminates Non-Sufficient Funds Fees

Rhea-AI Summary

Flagstar Bank announced significant changes to its overdraft program, effective August 1, 2022, aiming to enhance customer financial management. Key updates include the elimination of $36 non-sufficient funds fees, consecutive overdraft fees, and overdraft protection transfer fees. Additionally, overdraft charges will now be limited to three per day, and transactions of $10 or less will not incur overdraft charges. These adjustments aim to support customers in maintaining a sound financial footing.

Positive

• Elimination of $36 non-sufficient funds fees.
• Consecutive overdraft fees and overdraft protection transfer fees are abolished.
• Overdraft charges limited to three per day, improving customer experience.
• Lower threshold for exempting overdraft charges from $5 to $10.

Negative

• None.

Revamps Overdraft Program to Benefit Customers

TROY, Mich., June 6, 2022 /PRNewswire/ -- Flagstar Bank will eliminate its current non-sufficient funds fee of $36 and make other significant changes to its overdraft program, starting Aug. 1, 2022.

Here are key ways customers will benefit:

• Non-sufficient funds fees for transactions returned unpaid will be eliminated.
• The consecutive days overdraft fee for maintaining a negative balance will be eliminated.
• Overdraft protection transfer fees for automatically transferring funds from a linked account to cover overdrafts will be eliminated.
• Overdraft charges will be limited to three per day, down from five per day.
• Overdraft charges will not be assessed on any transaction $10 or less—an improvement from $5 or less.
• Overdraft charges will not be assessed when the end of day negative balance is $10 or less—an improvement from $5 or less.

"We think the changes we're announcing today will help our customers manage their finances more confidently," said Anne Bertelsen, head of Retail Banking for Flagstar. "Our new program brings lots of options to make it easier for people to stay on a sound financial footing. Still, we understand sometimes customers need assistance to get back on track, and when they do, they can count on Flagstar to help them."

Bertelsen said Flagstar has offered an account for several years called SimplyOne that never assesses overdraft or NSF fees. "SimplyOne makes banking more accessible to more people in the community," she said. "It's a great product that has earned Bank On national certification for ensuring low cost, high functionality and customer safety."

Flagstar's programs to help financially challenged customers include Fresh Start, which allows people who are having difficulty bringing their account positive to repay Flagstar in up to four installments with no fees and no interest. "Customers can continue to use their checking account—it won't be charged off and won't be sent to an outside collection agency while they're enrolled in Fresh Start," Bertelsen said.

Here's what Flagstar customers can do to avoid overdrafts:

• Monitor your account and transactions via online banking, telephone banking and Flagstar's mobile banking app. Set up customized balance alerts to avoid balance shortfalls.
• Take advantage of our 9 p.m. ET deadline on business days to make a qualifying deposit to avoid overdraft charges or returned items.
• Link another deposit account to your checking account. Funds will be automatically moved to cover transactions that exceed your available balance.
• Link an overdraft line of credit to your checking account. Funds will be automatically moved to cover purchases or payments that exceed your available balance.
• Use Bounce Protection, a service that gives Flagstar the discretion to cover overdrafts. You may be charged an overdraft fee, but your transaction will be covered instead of being declined or returned unpaid. Bounce Protection can be added or removed at any time.
• Remember to check out Fresh Start if you've overdrawn your account. It provides uninterrupted access to your account while you repay the overdrawn amount.                                                           

About Flagstar

Flagstar Bancorp, Inc. (NYSE: FBC) is a $23.2 billion savings and loan holding company headquartered in Troy, Mich. Flagstar Bank, FSB, provides commercial, small business, and consumer banking services through 158 branches in Michigan, Indiana, California, Wisconsin and Ohio. It also provides home loans through a wholesale network of brokers and correspondents in all 50 states, as well as 82 retail locations in 28 states. Flagstar is a leading national originator and servicer of mortgage and other consumer loans, handling payments and record keeping for $300 billion of loans representing almost 1.3 million borrowers. For more information, please visit flagstar.com.

For more information contact:

Susan Bergesen
Flagstar Bank
(248) 312-6237

View original content:https://www.prnewswire.com/news-releases/flagstar-bank-eliminates-non-sufficient-funds-fees-301561706.html

SOURCE Flagstar Bancorp, Inc.