Bank of America reverses fee policy

Just this year, the bank had raised that cap from five to 10. It also raised the fee this year for the first overdraft in a 12-month period to $35 from $25 - an increase that still stands.

Enrollment in the bank’s overdraft program is currently automatic for new customers, and opting out is possible only in limited circumstances, said Anne Pace, a Bank of America spokeswoman. But now customers will be able opt out, meaning that transactions will be denied at the register if customers don’t have enough money to cover a purchase.

Pace said the company didn’t have an estimate on how many people might opt out of the overdraft program, noting that many consider it a useful backup. Customers will need to visit their local branches to opt out. They will also be able to call, Pace said, but the appropriate phone number hasn’t yet been determined.

Pace said the company is responding to the “changing needs’’ of customers in the difficult economic environment.

JPMorgan Chase & Co. also will be overhauling its overdraft fees, a spokeswoman said late yesterday.