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

  • Redacted

    Nothing like charging a fee for being poor.

    • MadHierophant

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

  • Gary Gunter

     Yup.  Hubris will be the end of them.

  • Anarchy Pony

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

    • DeepCough

      They have “Dark Souls.”

  • Adamsshadow

    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

      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.

  • Mike James

    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…

    • Mike James

      And remember how it was Bank of America that did it?


  • Peetr

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

    • SF2K01

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

  • Derrick Best

    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.

  • Marklar_Prime

    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.

  • tooCents

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

  • NotTrollin

    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. 

  • Okarin

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

  • Eric_D_Read

    We need to start cloning John Dillinger.

  • Robert S

    Time to move to a community bank or credit union.