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BOA is at it again, higher minimums & higher fees coming your way


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#1
crimson

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http://www.boston.co.../?p1=News_links

Bank of America customers may pay more as accounts revamped
By Todd Wallack
Globe Staff / June 15, 2011

Some Bank of America customers could soon pay higher fees for checking and other services unless they change their banking habits by maintaining higher minimum balances, avoiding tellers for routine transactions, or making other adjustments.

Over July and August, the nation’s biggest bank plans to start phasing out traditional checking products and move 530,000 customers in three states — including 170,000 in Massachusetts — to a new slate of accounts. By the end of next year, it plans to move all of its checking customers nationwide to the new offerings, including more than 2 million in Massachusetts.

The new accounts require customers to meet higher balance requirements or other conditions to get free checking, so some customers who qualified for no-fee accounts under the old system may not under the new one. For instance, the popular MyAccess checking account allows customers to avoid the $8.95 monthly fee if they maintain an average balance of $1,500 or make direct deposits every month.

By contrast, a new account, called Enhanced checking, requires customers to make deposits totaling $2,000 a month, maintain at least $5,000 in various accounts, or use a bank credit card at least once a month to avoid a $15 monthly fee. In addition, the bank also plans to offer customers an eBanking account that will allow them to avoid the $12 monthly fee if they sign up for paperless statements and make all deposits and withdrawals online or through an ATM.

Bank of America says there will be more ways to avoid fees under the new accounts than the old ones, but declined to disclose how many checking customers pay monthly service fees, and how that number might change under the new account structures. Some customers could wind up paying more, while others pay less, said bank spokesman Don Vecchiarello.

The switch to the new ac counts comes as Bank of America increases other charges, ranging from annual credit card fees to heftier penalties for overdrawing accounts.

Bank of America is hardly unusual. Financial institutions across the country have raised fees to offset sluggish demand for loans; the cost of tougher regulations; and losses from foreclosures.

“We have seen this across the board with other institutions and other types of fees,’’ said Pamela Banks, senior policy counsel for Consumers Union, a nonprofit advocacy group in Washington and publisher of Consumer Reports. “As some doors may be closing, institutions are looking for new ways to make up that income.’’

Bank of America’s fee increases are particularly notable because half of American households have an account or relationship with the Charlotte, N.C.-based financial giant, according to bank estimates. Bank of America is also the largest bank in Massachusetts.

“Changes that we’ve seen in the economy and the regulatory environment mean that all banks, including Bank of America needed to reexamine their fee structures,’’ said Vecchiarello, the bank spokesman. “The services that we provide are certainly valuable and some of these services do result in additional costs to us.’’

Here are some of the changes Bank of America is making:

■ Starting later this month, the bank will impose a $35 fee if customers overdraw their account by a penny; previously, customers were charged only if they were overdrawn by $10 or more.

■ Bank of America has warned credit card customers that they face a penalty rate of up to 30 percent on future balances if they are late on payments.

■ In February, Bank of America increased penalties for customers who make early withdrawals on new certificates of deposit.

Chris Chen, a longtime Bank of America customer and Arlington resident, said he was irked about the new monthly checking fees and the penalty interest rate for credit cards. He said he worries that there are so many requirements to avoid the monthly checking fees that he could easily wind up getting hit with a charge if he stops direct deposit or his monthly balance temporarily falls below the minimum.

“I have not been affected by the other fees yet,’’ Chen said. “However, it is clearly laid down there as a trap they would like me to walk into.’’

If you haven't already, start looking for a new bank. Maybe move to a no fee or low fee credit union.

Edited by crimson, 15 June 2011 - 12:09 PM.

Equal rights for all in every state



#2
kas

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What is also an extra bite is that both the Feds and many states are forcing folks to either go with direct deposit or accept a debit card. Some who drew unemployment and went the debit card route, found there was a limit of card usage before a fee was deducted from the balance. I believe the government debit card, from a bank I never heard of, provide for four free ATM transactions. Lets be honest, standing at an ATM counting a few hundred might give the local criminals an invitation to mug you. Now my bank, U.S. Bank, has adopted similar policies as BOA. I avoided a fee on my checking account by opening a saving account and allowing a transfer of $25 each month from my checking account. In regard to direct deposit, U.S. Bank will waive the monthly fee if the monthly amount is somewhere above $700. Probably a small minority of the population don't meet this threshold and most like are cashing that monthly social security check at the grocery store or another B&M for a fee.
Build the Border Fence


Given a choice, voters in the majority of states have reaffirm The Defense of Marriage Act, each and every time. It was wrong for judges and politicians to enact legal policies that are typically not honored in the majority of states. To be clear to the 'No H8' crowd, many Americans will never except an 'Adam and Steve' union as equal to a traditional marriage. It ain't hatery, they are just living their values.

#3
kar522

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We bank locally and since we are old, we have no minimums & no fees (other than bouncing a check)...today is SS day so I'm off to get some cash...I opted for DD...soooo easy, and the money's always there on the 3rd Wednesday of the month... :)

Where I am is where I need to be...
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If you can't be a good example, then you'll just have to be a horrible warning.~Catherine Aird

Not MIA...just trying to figure out Windows 8!

#4
steltek

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What is also an extra bite is that both the Feds and many states are forcing folks to either go with direct deposit or accept a debit card. Some who drew unemployment and went the debit card route, found there was a limit of card usage before a fee was deducted from the balance. I believe the government debit card, from a bank I never heard of, provide for four free ATM transactions. Lets be honest, standing at an ATM counting a few hundred might give the local criminals an invitation to mug you.

Now my bank, U.S. Bank, has adopted similar policies as BOA. I avoided a fee on my checking account by opening a saving account and allowing a transfer of $25 each month from my checking account. In regard to direct deposit, U.S. Bank will waive the monthly fee if the monthly amount is somewhere above $700. Probably a small minority of the population don't meet this threshold and most like are cashing that monthly social security check at the grocery store or another B&M for a fee.


Social Security is going to mandatory direct deposit. All new beneficiaries must either have a bank account or have their checks put on a Direct Express Mastercard debit card. By May 2013, everyone receiving Social Security payments (with very few execptions) will have to have direct deposit.

BTW, the Direct Express card gives you ONE free ATM withdrawal at a network ATM. After that, there are fees....

#5
wtf

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Geez...it's a never ending battle with BOA on their fees and minimums. Sadly they own the most ATMS around where I am , so it's not easy to say goodbye to them.

#6
kar522

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Someone's got to make up the difference...

BofA To Pay $8.5B Housing Crash Settlement

Where I am is where I need to be...
Just Another Chicago Born & Raised Kook
If you can't be a good example, then you'll just have to be a horrible warning.~Catherine Aird

Not MIA...just trying to figure out Windows 8!

#7
kas

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Someone's got to make up the difference...

BofA To Pay $8.5B Housing Crash Settlement


Led by Barney and Chris, the Feds pushed lenders to make mortgage loans (before the meltdown) to to anyone who could breath. As a standard practice, these loans are resold, except smart money folks knew that mortgages provide to 'questionable' folks might not be repurchased. Well some slick finance guru(s) got the bright idea to slice up loans and mix the bad with the good and offer the package to instutional investors. Just based on past market cycles, the management of institutional investment firm should have realize housing prices were greatly inflated and only in OZ would value never drop. Also while there may have not been a track record for new 'poor/working class' home buyers, we do know car dealers repo many vehicles when time get tough. What I have notice, is that many who 'sucked' into homeownership too often ignore home mainteance and a few will become deadbeats.

Edited by kas, 29 June 2011 - 03:49 PM.

Build the Border Fence


Given a choice, voters in the majority of states have reaffirm The Defense of Marriage Act, each and every time. It was wrong for judges and politicians to enact legal policies that are typically not honored in the majority of states. To be clear to the 'No H8' crowd, many Americans will never except an 'Adam and Steve' union as equal to a traditional marriage. It ain't hatery, they are just living their values.

#8
kas

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I might have stated it before, the major banks use to 'punish' the morons who were financially challenged; but the Demorats decided stupid folks who bounced checks shouldn't learn the hard way. IMHO, if the IRS can ripe deadbeats a new anus, then WTF should bank executives be treated like Slylock.

How stupid and clueless are some in our society. The branch where I use to go, generally folks filled out bank slips before getting into line. Now I bank at a city location and most expect the teller to fill out the deposit or withdrawal slips. Of course this causes people to wait longer in line and they begin *itching. I'm so tempted to holler out, "all you lazy clueless Obama luvers, fill out the slips yourself or don't whine about the delay". Oh well, until the Great Society is dismantled, we will never fix these clueless drones.

Wells Fargo to test $3 debit card fee

Wells Fargo plans to test a $3 monthly fee for its debit cards starting this fall.

The San Francisco-based bank said the fee will be applied to checking accounts opened in five states starting in October. The fee would be in addition to monthly service fees ranging from $5 to $30 that Wells Fargo already charges.

Although it's unusual, Wells Fargo isn't the first major bank to test whether customers will be willing to pay to use their debit cards. Chase last year also began testing a $3 monthly debit card fee in northern Wisconsin.

Other major banks have also revamped their lineup of checking accounts in the past year or so, in many cases by hiking monthly fees or adding conditions customers must meet to qualify for fee waivers.

At Wells Fargo, for example, monthly service fees can be waived if customers set up direct deposit or maintain a certain minimum balances.

The industry's experimentation with fees is partly a response to a new regulation that will sharply reduce the revenue that banks collect on checking accounts. Starting this fall, a new cap will limit how much banks can collect from merchants whenever a customer swipes a debit card. It's not clear exactly how much banks will lose. In 2009 banks collected an estimated $19.7 billion in such fees from merchants, according to the Nilson Report, which tracks the payments industry.

Wells Fargo has said it plans to recover about half the revenue it loses from the new regulation, either through product changes or volume growth. Earlier this year Wells Fargo announced that it was ending its debit rewards program. Chase has also ended its debit rewards program and PNC Bank will no longer give customers with free checking accounts rewards for debit card purchases.

For now, Wells Fargo's $3 debit card fee test will be limited to accounts opened in Georgia, Nevada, New Mexico, Oregon and Washington. A spokeswoman for the bank, Lisa Westermann, did not say when the bank would decide whether to roll out the fee in other areas.

The test comes at a time when consumers are increasingly relying on debit cards.

An Associated Press-GfK poll last month found that about two-thirds of consumers use debit cards more frequently than credit cards. When asked how they would react if they were charged a $3 monthly fee for their debit card, 61 percent said they'd find another way to pay.

If the fee was $5 a month, two-thirds said they'd do the same. If the fee was $7, the figure rose to 81 percent.

http://finance.yahoo...-...set=&ccode=
Build the Border Fence


Given a choice, voters in the majority of states have reaffirm The Defense of Marriage Act, each and every time. It was wrong for judges and politicians to enact legal policies that are typically not honored in the majority of states. To be clear to the 'No H8' crowd, many Americans will never except an 'Adam and Steve' union as equal to a traditional marriage. It ain't hatery, they are just living their values.

#9
kas

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Most folks probably don't know that criminals figured out methods to ripoff check cashing/payday loan businesses. Assume the banks will get the same treatment. Leaving aside the greed aspect, what must be address is that too many continue to go payday to payday or month to month with no desire to prepare for an emergency.

More banks may offer payday loans

Build the Border Fence


Given a choice, voters in the majority of states have reaffirm The Defense of Marriage Act, each and every time. It was wrong for judges and politicians to enact legal policies that are typically not honored in the majority of states. To be clear to the 'No H8' crowd, many Americans will never except an 'Adam and Steve' union as equal to a traditional marriage. It ain't hatery, they are just living their values.

#10
kas

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Being mugged by BOA might soon become a moot point. Of course, the articles that gold will rise to >$3,000 an oz seem to grow each week.

Moody's cuts BofA, Wells Fargo and Citi ratings

Moody's Investors Service lowered the debt ratings for Bank of America Corp., Wells Fargo & Co. and Citigroup Inc., saying it is now less likely that the U.S. government would step in and prevent the lenders from failing in a crisis.

The ratings firm said Wednesday that it believes the government is likely to provide some level of support for financial institutions, but is also more likely now than during the 2008 financial crisis to allow a large bank to fail should it become financially troubled.

The downgrades were widely expected after the three banks were placed on review by the ratings agency in June. They also stem partly from new laws that went into effect under the Dodd-Frank Wall Street Reform Act that was passed last year. The new law ended the possibility of the government bailing out a large financial firm and creates a way to liquidate failed financials.

Bank of America was the worst hit — with a two-notch downgrade in its key long-term debt ratings to Baa1 from A2. Wells Fargo's long-term debt was downgraded by one notch to A2 from A1, while Citigroup's rating remained the same at A3. However, Moody's downgraded Citi's short-term debt.

Moody's also downgraded the rating on both Bank of America and Wells Fargo for deposits.

All of the ratings are investment grade.

http://money.msn.com...amp;id=14294162
Build the Border Fence


Given a choice, voters in the majority of states have reaffirm The Defense of Marriage Act, each and every time. It was wrong for judges and politicians to enact legal policies that are typically not honored in the majority of states. To be clear to the 'No H8' crowd, many Americans will never except an 'Adam and Steve' union as equal to a traditional marriage. It ain't hatery, they are just living their values.

#11
kas

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I might have stated it before, the major banks use to 'punish' the morons who were financially challenged; but the Demorats decided stupid folks who bounced checks shouldn't learn the hard way. IMHO, if the IRS can ripe deadbeats a new anus, then WTF should bank executives be treated like Slylock.

How stupid and clueless are some in our society. The branch where I use to go, generally folks filled out bank slips before getting into line. Now I bank at a city location and most expect the teller to fill out the deposit or withdrawal slips. Of course this causes people to wait longer in line and they begin *itching. I'm so tempted to holler out, "all you lazy clueless Obama luvers, fill out the slips yourself or don't whine about the delay". Oh well, until the Great Society is dismantled, we will never fix these clueless drones.


BOA $5 monthky debit card fee might be another great reason to 86 The Great Society. Oh wait, lets the government run the banks and lend money. A crack house on one side, hillbillies cooking meth on the other and the topper, across the street the House of the Rising Sun, except it's all young underage boys. ;)

Edited by kas, 29 September 2011 - 03:24 PM.

Build the Border Fence


Given a choice, voters in the majority of states have reaffirm The Defense of Marriage Act, each and every time. It was wrong for judges and politicians to enact legal policies that are typically not honored in the majority of states. To be clear to the 'No H8' crowd, many Americans will never except an 'Adam and Steve' union as equal to a traditional marriage. It ain't hatery, they are just living their values.

#12
kas

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Might be on the look out for a sale on a good shovel and save an empty coffee can.

Posted Image

BofA website not working again

Bank of America's website, plagued by problems Friday and Saturday but supposedly fixed on Sunday, wasn't working again Monday.

Many users trying to access bankofamerica.com get a message saying the home page is temporarily unavailable. But spokeswoman Tara Burke said customers who experience slowness or can't get into their accounts should keep trying.

Burke said the access problems are a result of the bank managing traffic volume during peak use.

"We've simply taken some proactive measures to manage customer traffic during peak hours during the day," she said. "That could result in some customers experiencing slowness or temporarily having access issues."

She declined to say whether volume has surged in recent days.

The problems began Friday, a day after the bank said it would start charging a $5 monthly fee for customers using debit cards. Burke insisted there's no connection. The delays and the home page message persisted Saturday, but Burke said Sunday that things were fine.

She said Monday that there's been no hacking and no customer information was compromised.

She said the company doesn't break out the root cause of website problems and had no estimated time for when the sit might begin working normally for all customers.

Bank of America, based in Charlotte, N.C., is the biggest U.S bank as measured by deposits.

It offers customers a free eBanking account if they do all their banking online and at ATMs. Customers are charged an $8.95 monthly fee for the account if they also use branch locations.

http://www.msnbc.msn...60794?gt1=43001
Build the Border Fence


Given a choice, voters in the majority of states have reaffirm The Defense of Marriage Act, each and every time. It was wrong for judges and politicians to enact legal policies that are typically not honored in the majority of states. To be clear to the 'No H8' crowd, many Americans will never except an 'Adam and Steve' union as equal to a traditional marriage. It ain't hatery, they are just living their values.

#13
kar522

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I might have stated it before, the major banks use to 'punish' the morons who were financially challenged; but the Demorats decided stupid folks who bounced checks shouldn't learn the hard way. IMHO, if the IRS can ripe deadbeats a new anus, then WTF should bank executives be treated like Slylock.

How stupid and clueless are some in our society. The branch where I use to go, generally folks filled out bank slips before getting into line. Now I bank at a city location and most expect the teller to fill out the deposit or withdrawal slips. Of course this causes people to wait longer in line and they begin *itching. I'm so tempted to holler out, "all you lazy clueless Obama luvers, fill out the slips yourself or don't whine about the delay". Oh well, until the Great Society is dismantled, we will never fix these clueless drones.


Does a ripe deadbeat have the aroma of a Slylock?

Ummm...you'd hate my bank then, because hardly anyone fills out their own slips no matter what their political leanings...the staff has always done it as part of customer service...our bank has a website, but very few folks use it, so downtime is no big woo...

3rd UPDATE: Bank of America Says Website Issues Resolved

Where I am is where I need to be...
Just Another Chicago Born & Raised Kook
If you can't be a good example, then you'll just have to be a horrible warning.~Catherine Aird

Not MIA...just trying to figure out Windows 8!

#14
kas

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Does a ripe deadbeat have the aroma of a Slylock?

Ummm...you'd hate my bank then, because hardly anyone fills out their own slips no matter what their political leanings...the staff has always done it as part of customer service...our bank has a website, but very few folks use it, so downtime is no big woo...

3rd UPDATE: Bank of America Says Website Issues Resolved


Really don't give a 'rip' where you bank and where I bank is due to an out of town regional bank takeover. However, it's based in a state that permit state prisoners to help elect a SNL clown to the senate does get under my skin. So if Iowans are able to spend extra minutes in line waiting for a couple tellers writing out the slip, then they show patience. However, I'm in line to payoff my monthly credit card bill one Saturday morning and all I hear is Obama luvers whining, then Herman Cain is right, there are quite a few folks too stupid for their own good.

Now one senator has came out and told us to stop doing business with BOA. Do we really want to take serious a Demorat from a state that is on the brink of bankrupty, continue to raise taxes, shovel entitlement dough to the leeches, and unable to get the state and local unions to take a haircut.

Edited by kas, 04 October 2011 - 05:59 AM.

Build the Border Fence


Given a choice, voters in the majority of states have reaffirm The Defense of Marriage Act, each and every time. It was wrong for judges and politicians to enact legal policies that are typically not honored in the majority of states. To be clear to the 'No H8' crowd, many Americans will never except an 'Adam and Steve' union as equal to a traditional marriage. It ain't hatery, they are just living their values.




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