Bank of America has declared war--on America
The bank now plans to charge $5 per month for using debit cards.
Bank of America has lost money from a cap on fees that they can charge retailers. Now they're coming after you to make up the difference.
B of A CEO Brian Moynihan, is hoping customers accept the new fees on debit card use.
Other banks are watching carefully as they look to do the same. In fact, Wells Fargo and Chase are already testing debit card fees.
It's hard not to feel like banks are punishing people for the recent government crackdown on banking practices, most notably by capping a variety of bank fees. However, banking apologists say the banks are simply doing business as they should, doing all they can to earn profits and increase their share price. Debit cards are a service, a service that costs the bank money, so it is fair for banks to charge for that. However, that defense is a tough sell during a recession.
Bank of America is especially looking to make extra money wherever it can. Despite a massive government bailout (provided by the same taxpayers it plans to charge) at the start of the recession, it is still listed as one of the most troubled banks in the U.S.. Hoping to change that, the banking giant is betting that debit card users don't mind or notice the new fees, or that they will actually agree with them.
However, at a time when many Americans are feeling the pinch of the recession, the $60 per year fees will certainly be noticed.
Announcement of the new fees came as new regulations capping card-based transactions come into effect. Until now, banks have charged up to 44 cents per transaction. This has taken a bite out of retailer's profits.
Retailers, who felt they had no negotiating power against the banks appealed to Congress, and Congress capped the fees at 24 cents. That difference is costing the banks billions, and they want to make it up.
In fact, amongst the myriad new fees that some banks are considering is a fee to charge ATM users who print their balance at the machine.
Banks openly admit they are pushing back against Congressional regulation of their practices. What remains to be decided is, how much pushing their customers are going to accept.
© 2011, Catholic Online. Distributed by NEWS CONSORTIUM.
- - -
Pope Benedict XVI's Prayer Intentions for January 2013
General Intention: The Faith of Christians. That in this Year of Faith Christians may deepen their knowledge of the mystery of Christ and witness joyfully to the gift of faith in him.
Missionary Intention: Middle Eastern Christians. That the Christian communities of the Middle East, often discriminated against, may receive from the Holy Spirit the strength of fidelity and perseverance.
Keywords: Bank of America, fees, congress
Rate This Article
Leave a Comment
More Business & Economics News
- Web developer: Earn $60,000 a year - without college degree or debt
- China, India, Brazil could dominate global investment by 2030
- Unemployment in U.S. comes roaring back - in a big way
- Criminally unfair? Why disgraced Enron CEO Skilling could see freedom sooner than you think
- Berkshire Hathaway Inc. hits first quarter record profit at 51 percent
- China and Japan now hold record amounts of Obama debt
- Does shift to mobile mean Facebook's salad days are done? Not at all
- U.S. annual growth rate slowest since 1929, start of Great Depression
- Prosperity gap between races in U.S. widened during recession
- Fr. Paul Schenck: Finding Living Faith on Catechetical Sunday
- The Movie Yellow: Incest as 'Normal' and Cassavates's Slides Into the World of Woes
- The Chicago School Teachers Strike Reveals the Need For School Choice
- The Sexual Barbarians and the Dissolution of Culture
- The Happy Priest Challenges Us to Ask: Who is Jesus to Me?
- Michael Coren on Canadian Public Schools: Teachers, leave those kids alone
- We Cannot Ignore Our Consciences: Cardinal Dolan On Religious Liberty
- In the Face of Danger, Successor of Peter Travels to Lebanon as a Messenger of Peace
- Reflections on the Dignity and Vocation of Women: Who or What?
Disclaimer: The columns, articles, advertisers claims and any other features provided on Catholic Online Business & Economics are provided for personal finance and investment information and are not to be construed as investment advice. Under no circumstances does the information in this content represent a recommendation to buy, sell or hold any security. The views and opinions expressed in an article or column are the author's own and not necessarily those of Catholic Online and there is no implied endorsement by Catholic Online of any advice or trading strategy.