Famous Bank Abandons Overdraft Fees

ING to Change Overdraft Policy for Current Accounts

ING is set to modify the subscription terms of current accounts that allow customers to remain overdrawn for an extended period without needing to have a positive balance in the meantime, as confirmed by a spokesperson for the Dutch bank.

Implications for Customers

At present, there is no indication of how many customers will be affected by the change.
Most likely, it will concern accounts opened many years ago, on which many account holders probably were not even aware that they could remain in the red indefinitely without paying significant interest.

Changes in Overdraft Facility

The implementation date of the overdraft restriction on the current account varies depending on the customer, as the systems can only process a limited number of changes per day.
The spokesperson reassures that “ING will not close the account.” A time limit for the overdraft will be set or it may be eliminated entirely.

Effects on Unauthorized Overdraft

The largest bank in the Netherlands, with 1,230,000 customers in Italy, warns that if customers find their account overdrawn, they are doing so without permission.
“That’s why we inform customers promptly,” adds the spokesperson.

Penalties and Notifications

Customers with an unauthorized overdraft on their account cannot utilize the account and are required to pay a commission that approaches 14%, a much higher cost compared to the current one.
ING has not yet disclosed exactly when and for whom the overdraft rules will change but assures that it will send a notice at least two weeks before the amendment to the directly involved parties.

Restrictions on Overdraft Usage

The change affects customers who have used the overdraft facility on the current account in the last year and not directly those who have gone negative for a short period only.
“If customers see no opportunity to reach a positive balance in the near term, they can contact us,” states the ING spokesperson.

Therefore, ING will no longer allow customers to remain in the red for an extended period.
“We want our customers to be financially healthy.
That’s why we are discontinuing products that do not require periodic repayments.”