Bankes Move Credit Card Fees to Checking Accounts

Banks Move Credit Card Fees to Checking Accounts
Reported by: RNS Newsroom Solutions
Thursday, May 28, 2009 @07:40am CST

Banks are responding to new restrictions on credit card fees by creating new fees for checking accounts.

"USA Today" says lenders are making it increasingly easy for consumers to spend more than they have available in checking accounts and then punish them with steep fees.

Bank of America has announced plans to raise fees on certain checking accounts beginning next month.

SunTrust has already raised the punitive fees for customers who overdraw checking accounts multiple times.

Wachovia has added to fees charged when customers transfer funds between accounts to cover overdrafts.

Michael Moebs who runs an economic research firm named for himself in Illinois calls it a "double whammy" noting "the American consumer as a taxpayer was asked to put up 700-billion dollars, and now they're getting another whammy from banks increasing fees."

Simon Johnson, formerly with the International Monetary Fund and an instructor at MIT's Sloan School of Management says banks "are supposed to act in the interest of shareholders, so they're gouging consumers." In their own defense banks say with rising unemployment, their customers have become riskier investments so they have to raise fees to offset the risk.


I'm adding "Booooo!!!" The "liabilities" the banks speak of are the same "liabilities" that make them rich to begin with.

I am VERY pleased with my new bank - a local bank that claims to be America's first online bank, and boasts phenomenal interest rates on the checking account.

At least I can speak directly with the manager if I have any questions or complaints. So far I have no complaints with my new bank - so far.

The local banks and credit unions treat you much better than the big banks do. I also note that the list of fees on the local bank's fee schedule is far shorter than Chase's. As long as you maintain a positive balance, you're fine. If you keep several thousand in your accounts - enough that the bank can make money just from loaning what's in your account (y'know, the old, standard way for banks to make money?) they will bend over backwards for you.

You couldn't get me to open an account with any of those big banks. Not for anything. Crooks!

Today they moved $.68 from my savings account to my checking account to cover a transaction and charged me $4 in the process. That's, what, nearly %500.

Jay

My CU does transfers to and from all accounts for free- including loan payments, borrowing against the credit line, and even reversing a loan payment.

You're being robbed.

No fees.

If I am slapped with any extra fees, I will be shopping for another bank.

If we don't have enough money to buy our food/rent/living expenses, then we sure as hell don't have the extra cash to pay some stupid, greedy fee. IMHO

...if banks simply prevented people from overdrawing their accounts. But then there would be no overwithdrawl fees.

I first noticed this nickel-and-diming sh*t with the bank industry collapse in the 1980's, and since then it seems it crops up whenever businesses have to defend their revenue streams (e.g., airline baggage fees).

Seek out a local credit union and put your money there.

It's kind of like comparing BoA to McD's. In any town, no matter where you go, you'll find the both of them. It's all about accessibility.

However, I belong to my college credit union - more than 50 miles away from where I live and I have no problems with access. Most credit unions will allow deposits and withdrawals (for no fee) through other banks' or credit union's ATMs. If your college or union or school board or city offers one by all means take a look at it. You may be surprised at just how much access you have.

I've never had to use it.

I heard this was coming...and no surprise...the banks are looking for any and every way to turn a buck right now. Our bank used to charge a fee if you keep your monthly balance under $500 (it wasn't that long ago that I was lucky to have that much in the account at anyone one time) tacking on $20 a month "service" fee. Now I hear they have raised that minimum to $1,000 a month and the fee is now $35. IMHO, it's highly discriminating to set a limit on these fees...either charge them to everyone or no one.

Unlike a credit card, it's near impossible not to have a checking account and thus ground for predators to lick their chops at when they want a new pile of cash to pay off their failed gambles.

I didn't realize that BofA was going to start gouging me next week. I am looking into changing banks.

There is a local bank down the street from my house that offers an Over-55 plan with free checking, free checks, free money orders, etc -- no minimum balance. They also have online banking.

Apparently not a moment too soon.

Fuck them.

These bank idiots might want to read "The Tipping Point".

At least where I am there aren't any local and the closest ones have restrictions that I don't meet. It makes no sense to have to drive half an hour to get to the bank. I do agree that credit unions are the way to go but it's not quite as easy as walking to the local branch and opening an account.

And make it that much easier for people to join credit unions.

I'm thankful I'm in one now. I don't have to worry nearly as much that its involved with so much of these questionable loan practices as I would if I had a regular bank account. I've stuck with one I've had since living in the Bay area almost 10 years ago. If you are a member of a reasonable sized credit union, you can feel more secure in their stability and having a good set of services from them, and you also have the benefits of not being screwed by what you might when having a regular bank account.

I've been resistant to buying a GPS device because of privacy concerns. However, one feature, if I found out it had it, which might get me to get one is if it would show the nearest bank/credit union that wouldn't charge me CC fees for a cash withdrawal when driving around. That and other extra services like getting money orders, deposit coin rolls, etc. That would go a long ways to making that worthwhile, as that is the one issue that makes it harder to bank at someplace that is not Bank of America or another big bank that has branches that one can see while driving by and know they can go for those types of services with no fees.

and be able to keep their non-profit status. It's that exclusive nature that allows them to keep it - besides, the banks' lobby is way too strong.

The good news is there are nationwide CU's with virtual "branches" and exchanges with other Credit Unions that make it easier to do no-fee ATM transactions, and anything else you may need to visit a branch for.

These banks are pretty stupid. No wonder they are in such sad shape. Ripping off their customers as we bail them out is not going to help the bankers business. Definitely stupid on the banks part.

Run out of Lubbock with only 16 branches in the entire state. I love them-they really take good care of their customers.
I had a major fiasco last month that they fixed with no hassle (gave me back all my overdraft fees).

for sending statement copies.

And I think they did it because I no longer keep a very large balance in our accounts.
Last year there were NO fees for my statement copies.

Ironically, I have been strongly advocating for people to use local banks, and to esp. avoid the
Big 5 bail-outed banks.

Naturally the local bank will not be getting much money in our accounts, just enough to run the monthly bills.

I have saved on stamps and checks by paying several utility bills by credit card over the phone.
One statement, one check a month, so far no "convenience fees" to use it for bill paying.

My bank charges 20.00 per extra statement, which I think is ridiculous. I guess they figure if you can't check your balance properly, then you'll be more prone to make a costly mistake.

Bastards.

and everything is done online. It's great because you can make as many copies as you want and constantly monitor all your expenses (if you're like me and use a check card frequently). It's also good for the environment; no waste of paper!

Burning Down the Isla Vista Bank of America

No Longer a Joke

After attending Kunstler’s speech, Doug Hewitt returned to his fraternity house. Hewitt, now 53, was a freshman at UCSB during the 1969-70 academic year. His 20-year-old son currently attends Santa Barbara City College and lives on Del Playa Drive in Isla Vista.

Later that night, Hewitt said he heard rioters were trying to burn down the bank. Around 10 p.m., he went outside to see what was happening. Across the street from the bank, on the sidewalk that now fronts Woodstock’s Pizza and Javan’s Sandwiches, Hewitt said he watched as fire engulfed the structure.

“The flames were just shooting up the arch of the two-story brick building, three-story, whatever it was,” Hewitt said. “It was like your worst nightmare. This is really happening. People would talk about it before. You heard about ‘oh, let’s go burn a bank,’ but it actually happened. I don’t remember if people were happy about it. There were some students who got really wrapped-up in the whole thing - it became their reason for being here.”

Hewitt said he and his friends who were watching looked at each other in disbelief, realizing the situation in Isla Vista was “no longer a joke.”

When is the present situation "no longer a joke?"

When peaceful assembly is no longer allowed, the inevitable recourse is to make your cries heard through force.

Like not banking at BOA or Citi or.............
not shopping at Wal-Mart.

I don't mean just the few 100 000 of us who don't do that..
what happens if a few million stop feeding the big boys???

Around here, there are 3 prices for local services and small business owners, depending on how you want to pay:
credit card price
check price
and cash price.

and called them immediately. I supposedly have a TOTALLY free checking account, but they explained that there is some fee if you don't do anything for 90 days. They took off the charge. I was prepared to close the account, but didn't say anything. I was polite and firm and it was removed. I think that people have to be very pro-active, too. Some people tolerate mysterious charges or don't look at their statements. Or they are very fatalistic and feel that they won't be able to work with the bank. I have even gotten overdraft charges removed a couple of times.

It is not OUR fault that they invested money badly. It's not fair to charge their "lender" (us) for their blunders. ng

Oh yeah, he said "lawyers" instead of "bankers".

Huh. Even Shakespeare made mistakes every once in awhile.

It was the lawyers' who drew up these incoherent, unreadable contracts for the banks to begin with. nt

i overdrew my account by four cents. four cents. they charged me $35.00 and then one day later another
$35.00 for an "extended overdraft" or some such shit. i wrote to them and told them it was usury and robbery and i wanted my money back. they returned half of it "as a courtesy."

i am starting to really hate banks.

Someone stole my husband's debit card number and charge $900 at an out-of-state Wal Mart. We had to go in to prove we weren't in that state and they said they would cancel the card. Guess what! They didn't cancel the card! The thief used it again. I think Charter One expected us to pay the fees. We certainly didn't have $900 in there but they let the transaction go through anyway. Ridiculous. We no longer bank with them.

Sorry that you had to go throught that. I'm upset with my bank right now because they will not let me stop all electronic withdrawals. It's my account (& money) supposedly,so why won't they give me the option to prevent theft?

Since I haven't used my card in a while, they have reduced my credit limit to $500 and increased the interest rate to 17%.

I'm sure it was in some of the fine print when you signed for your card. They punish you for not giving them money.