Saturday, March 03, 2012

Bank Of America At It Again

Keep a lot of money in our vault, buy a lot of shit, or get socked with penalties

"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."

I like how Yahoo winds up saying banks have the right to make money so just shut up and pay the fees.


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