Banks Quietly Ramping Up Costs to Consumers

[ProSense]

Source: New York Times

Even as Bank of America and other major lenders back away from charging customers to use their debit cards, many banks have been quietly imposing other new fees.

<...>

“Banks tried the in-your-face fee with debit cards, and consumers said enough,” said Alex Matjanec, a co-founder of MyBankTracker.com. “What most people don’t realize is that they have been adding new charges or taking fees that have always existed and increased them, or are making them harder to avoid.”

Banks can still earn a profit on most checking accounts. But they are under intense pressure to make up an estimated $12 billion a year of income that vanished with the passage of rules curbing lucrative overdraft charges and lowering debit card swipe fees. In addition, with lending at anemic levels and interest rates close to zero, banks are struggling to find attractive places to lend or invest all the deposits they hold. That poses another $8 billion drag.

<...>

Banks may also be betting that consumers will not notice the quiet creep of existing fees. As Richard K. Davis, U.S. Bancorp’s chief executive, told investors on a recent conference call: “We’ll see if our customers complain and move, or just complain,” he said.

Read more: http://www.nytimes.com/2011/11/14/business/banks-quietly-ramp-up-consumer-fees.html?pagewanted=all

[L0oniX]

1. It's still Bank Transfer Day.

[russspeakeasy]

2. "Banks commit financial rape". That's about as surprising as

"politicians are using insider trading to get rich".

[valerief]

7. +1000

[SnowCritter]

3. Entitlement mentality, anyone?

Seems like the folks in charge of the mega-banks and/or mega-corporations think that they're entitled to ever-increasing profits. Gotta meet those Wall Street projections. Economic downturn? Screw that! Profits! Bigger profits! Will the customers complain? Eff 'em! We're entitled to more profits! :puke:

[msongs]

4. now that the corporate gestapos are busting heads in the camps, banks see business as usual nt

[Myrina]

5. Yeah, my credit union charged me a $26 overdraft fee IN ANTICIPATION

... of a possible overdraft. I was like :wtf: ???

I had more than enough money in my account to cover my monthly mortgage debit, which hits on the 9th, and no other scheduled auto-drafts. On the 10th, I got an email notification that they 'courtesy paid' my mortgage, and charged me the $26 overdraft fee, even though once they took that money there was STILL over $400 in my account.

When I called them, they said - literally - it was an anticipatory overdraft fee.


What. The. Hell.

[joanbarnes]

6. Along with bank transfer day, let's have expose bank fees day.

[mahatmakanejeeves]

8. they are under intense pressure to make up an estimated $12 billion a year of income that vanished

Banks are also lowering the rates they pay savers. The average interest rate for deposits has fallen to 0.74 percent from 0.8 percent during the first six months of this year, according to Market Rates Insight. Most consumers barely notice, but it translates into real money — about $1.5 billion a month in savings industrywide.

$1.5 billion per month times 12 months per year = $18 billion per year. That should do it.

[Lenomsky]

9. You guys PAY for checking A/C's?

I had no idea anybody paid for the privilege of a Bank holding their cash.

My bank pays me £5 per month if I deposit over 1K per month but not had the £5 very often lol

[Art_from_Ark]

10. There is a mish-mash of banks in the US

The big ones will charge whatever they can get away with. The smaller local banks will often have no-fee accounts, with certain conditions attached, like being at least 50 years old or keeping a minimum balance of $400, or only writing 3 checks a month.