Whack-a-mole: BEWARE new fees ahead
Bank of America axes debit fees, new fees likely.
Customers across the nation are celebrating Bank of America's decision to back away from its infamous $5 per month fees for debit card users. However, industry analysts are warning that customers shouldn't take to the streets in celebration just yet.
Despite the reversal, new fees are certainly ahead.
Bank of America and several other banks have given in to widespread customer dissatisfaction with anticipated debit card fees. Experts say the debit card fees were wildly unpopular because people felt like they were being charged for accessing their own money.
However, experts warn that new fees will shortly follow.
Bill Herdekopf, CEO of the credit card website lowcards.com said on Tuesday, "Yeah, this is a victory for consumers, but heads up: We're going to be seeing some type of other fees."
Others warn that the new fees will likely be more subtle. Alex Matjanec, the co-founder of Mybanktracker.com, a clearinghouse for public information about banks, said "Now more than ever read those letters you get from your banks. Those booklets with 20 pages? Read through those."
Public backlash, and new legislation which regulates the fees banks may charge have cut into bank's profits over the past year. However, despite these cuts banks are still generating profits. In addition, banks want to show shareholders that they can consistently outperform themselves year after year -- so there is great pressure to generate ever higher profits. While the banks are backing down from debit card fees, it's likely they will find new ways of recouping those losses.
Matjanec warned that consumers need to watch the banks very closely. He said that banks can change account types, which could leave customers more susceptible to different fees. He also warned that higher minimum balances and other fees could make their way into the marketplace.
In the fight against ever-encroaching bank fees, it appears that consumers have won a battle, but definitely not the war.
© 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, debit fees, new fees, hidden fees
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.