Bank of America To Charge Customers Fees Unless They Buy More Products, Have Enough Money

Bank Of OpportunityReports the Week via Yahoo News:

The banking giant is attracting criticism once again, with a plan to make checking accounts a whole lot more expensive Bank of America is working on “sweeping changes” that would levy new fees on customers with checking accounts, The Wall Street Journal reports. Proposed fees, ranging from $6 to $25 a month, could only be waived if customers meet certain requirements that favor the bank — by keeping a minimum balance, taking out a mortgage, or switching to online banking. The report comes months after Bank of America withdrew a proposed $5 monthly fee for using debit cards, after suffering a backlash from customers and lawmakers alike. Unsurprisingly, the new fee plan is already being slammed: Sen. Richard Durbin (D-Ill.) calls it “a challenge that cannot go unanswered.” Is the bank’s scheme outrageous?

Of course. Banks are extorting customers: It’s bad enough that BofA tried to instate the $5 fee for debit card users, says Hamilton Nolan at Gawker. But the new fees — driven by the struggling bank’s “insatiable need for sweet, sweet money” — are even “sneakier.” And BofA is neglecting an age-old principle of finance: Banks use customer deposits to make loans to others, which in turn results in profits for the banks. It’s “ridiculous” to charge customers for providing banks with the capital that is essential to their business.

But banks have a right to turn a profit: “Banks aren’t charities,” says Pallavi Gogoi for the Associated Press. They are “public companies and are expected to make a profit somehow.” Making money is “not as easy as it used to be.” With the Fed encouraging ultra-low interest rates, banks are seeing their traditional profit source dry up. New government regulations have curbed other banking fees, and banks are scrambling to make up for the loss of revenue …

Read More: The Week via Yahoo News

18 Comments on "Bank of America To Charge Customers Fees Unless They Buy More Products, Have Enough Money"

  1. Redacted | Mar 3, 2012 at 4:39 pm |

    Nothing like charging a fee for being poor.

    • MadHierophant | Mar 3, 2012 at 4:48 pm |

      Well, come on, they have to goad us into indentured servitude SOMEHOW…

  2.  Yup.  Hubris will be the end of them.

  3. Anarchy Pony | Mar 3, 2012 at 5:26 pm |

    I think these people may not actually have souls of any kind. Not even dimly burning, barely flickering souls.

  4. Adamsshadow | Mar 3, 2012 at 5:54 pm |

    BofA has been doing this for a while – that’s why I stopped banking there in the early 2000s.  I switched to Washington Mutual (who I honestly never had a problem with, not once), but once they went under, they got bought out by Chase…and started instituting the same kind of fees and policies as BofA.  Now I bank at a local bank, only three or four branches, but I hardly spend (or make) any money anyway, so all I need is free checking.  I don’t even like the idea of having a bank account period, but it’s very hard to function in a realistic manner in this country without one.

    The entire banking system is one giant, legal scam. 

    • Jin The Ninja | Mar 3, 2012 at 7:19 pm |

      good post, and i agree, but in a very odd sense- a credit union (at least the idea of it) is in many ways anti- capitalist (or at least mutualist) as it empowers communities rather than markets.

  5. Remember when about five million plus customers experienced phantom .25 cent charges on their accounts? And no one could explain where it came from. And no one was refunded that .25 cents? And then remember how no one multiplied .25 times five million or so and realized it is 1.2 million dollars? Yeah…

  6. Hey look! Another reason to take your money OUT of Bank of America and place it in a local credit union…

    • Assuming they’re not still arresting people who try to close their accounts.

  7. Derrick Best | Mar 3, 2012 at 7:36 pm |

    The only way to control a Major company is to vote with your pocket and encourage others to do so. biggest thing they fear is loosing customers en masse.

  8. Marklar_Prime | Mar 3, 2012 at 7:50 pm |

    I’ve been functioning quite well without a bank account for over 10 years – not as difficult as most people make it out to be.

  9. tooCents | Mar 4, 2012 at 2:24 am |

    People, anybody still banking with this Asshole Bank is a stupid asshole. Don’t be a schmuck. 

  10. NotTrollin | Mar 4, 2012 at 6:24 am |

    TD Bank’s “free” checking involves a $15 fee if you drop under $100 even for a minute. Screwed me bad during the 2010 Christmas season, had $14 left in the bank, they took out the fee, and then hit me with a $35 overdraft protection fee… twice. I know it’s all my fault for not being a responsible citizen. 

  11. can’t take your money out unless the bank gets a cut of it, don’t know what to relate it to

  12. Eric_D_Read | Mar 5, 2012 at 11:03 am |

    We need to start cloning John Dillinger.

  13. Time to move to a community bank or credit union.  

Comments are closed.