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
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SOURCE Flagstar Bancorp, Inc.
