Okay so the banks are trying to do something about overdraft fees before the government forces them to. You know how you go out running errands, you have $300 in your account, you make $307 worth of charges, all of them don’t post yet and your going to go put $50 in your account to make sure its all covered but before the money is even taken out of your account the bank hits you with overdraft fees?!?! Some of that is about to change. Two of the nation’s largest retail banks said they will announce new limits on overdraft fees Wednesday as the industry seeks to contain rising anger over the practice.

Bank of America, the largest retail bank, said that beginning Oct. 19 it will let customers decline overdraft protection, and it will no longer charge fees on overdrafts if the account is in the red by less than $10. The bank also will limit the number of times customers can be charged overdraft fees to four times a day — reversing changes earlier this year that increased the limit to 10 times a day.

J.P. Morgan Chase announced even farther reaching changes, agreeing to many of the reforms sought by consumer advocates.

Beginning in the first quarter of next year, the bank will ask debit card customers whether they would like to be able to overdraft. Those who decline will not be able to use their debit card to spend more than the amount remaining in their account. The company also said it will not charge overdraft fees if the account balance is in the red by less than $5 and that it will charge no more than three overdraft fees each day, down from a previous limit of six fees.

J.P. Morgan also said that it would subtract charges on debit cards and withdrawals from ATMs in the order that the transactions happen, ending a procedure that increased the number of overdraft fees in some cases by debiting larger transactions first, exhausting available funds more quickly.

The announcements comes as Congress is considering cracking down on overdraft fees, which are projected to generate as much as $38.5 billion in revenue for the industry this year. Most banks do not notify customers before they overdraw their accounts, nor do they give them a chance to cancel the transaction. source

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