Hancock Whitney is preparing to get rid of some overdraft charges and other charges for clients by the end of the year, the Gulfport, Mississippi, business revealed Friday.
The $36.5 billion-asset bank is likewise preparing to introduce a brand-new account later on this year called Assure Checking, which won’t bring overdraft charges.
Hancock Whitney is the current in the market to step away from overdraft charges, which supporters state struck low-income customers hardest.
Hancock is likewise signing up with a growing number of midtier banks that are following their huge rivals in cutting down on overdrafts.
“Today the financial industry has entered a new era in banking designed to provide customers with the tools needed to help them manage their overall finances, and we believe these changes are another step towards achieving that goal,” Hancock CEO John Hairston stated in a news release revealing the modifications.
Specifically, Hancock Whitney is getting rid of all nonsufficient-funds charges and specific overdraft security transfer charges. The business is likewise cutting the continual overdraft cost charged on accounts that stay in unfavorable area for a prolonged duration.
The bank is likewise increasing the overdraft balance limit that needs to be struck prior to a cost is charged, offering clients more space in unfavorable area prior to taking a charge. It did not state what that limit would be.
Hancock Whitney took in $28.6 million in overdraft charges in 2015, about in line with the $28.7 million from 2019, according to its call reports. The modifications are anticipated to cut service fee gathered on its accounts by $10 million to $11 million each year, the bank stated Friday.