Report: B of A customers can expect more fees

The bank isn't giving up more than $1 billion in revenue so easily.

By TheStreet Staff Nov 2, 2011 3:19PM

the streetBy Dan Freed, TheStreet

 

Bank of America (BAC) may have backed down from its bid to charge users of its debit cards $5 per month, but if you think that's the end of the bank's attempts to gouge its customers, you are living in a fantasy land.

 

"Eventually they've got to get that money back," Jefferson Harralson, an analyst at Keefe Bruyette & Woods, told the New York Post for an article published Wednesday. "I think you're going to see other types of fees come up."

 

According to the Post, fees "could emerge as increases in minimum balances, banks hiking monthly fees, maintenance fees and fees for using ATMs for non-customers." The newspaper cites Harralson's estimate that Bank of America will lose $1.2 billion to $1.4 billion in annual revenue from killing its debit-fee plans.

 

Bank of America was the most aggressive of the big banks when it came to the debit card fee, though Wells Fargo (WFC), JPMorgan Chase (JPM), SunTrust (STI) and Regions Financial (RF) all had similar designs before backing away from them in recent days.

 

Whether customers will tolerate other hidden fees -- or whether the banks can do anything to win Occupy Wall Street sympathizers back as customers -- remains to be seen, as public animus toward the banks gathers momentum. Indeed, the bank fee debacle may be seen as an early victory for the movement known as Occupy Wall Street.

 

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14Comments
Nov 2, 2011 4:20PM
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Unless we get another wave of deregulation that allows BOA to buy a regional credit union, they have gotten their last dime from me.   In my rear view mirror and fading fast. ....

Nov 2, 2011 4:44PM
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I was a customer of their's for 12 years. Switched today from them to a credit union. The notice in the mail about them wanting to charge me a fee for transfering funds between 2 checking accounts that I had linked under the same account months ago was the clincher. This bank needs to shove it's fees up it's a$$ and collapse already.

Nov 2, 2011 5:00PM
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I will be leaving B of A in December.  They used to be the dream bank with little fees, great customer service, and lots of locations.  They still have lots of locations but no longer have great customer service and the fees.  I am heading to my location credit union and Bank of America can take their fees and shove them.
Nov 2, 2011 4:54PM
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Wait, everyone is looking at this all wrong.  Even Jefferson Harralson, an independent analyst sees this as lost revenue.  The TRUTH of the matter is that banks have been using overdraft fees, ever-increasing debit swipe fees, ATMS vs. salaried tellers and a whole slew of other things to increase their profit margins beyond historic levels.  What kind of profits did they see in the mid 20th Century back before any of this existed and, Heaven forbid, before people actually carried balances and paid interest on their charge cards? (that's what they used to be called back then, because they weren't for carrying credit balances for eternity)

Perhaps banks need a lesson in how good they have it now - even with regulations stemming this rampant fee-profiteering.  They haven't LOST any revenue, its only been partially returned to the revenue levels they used to have.  If they want profits, perhaps they should try to earn it the old fashined way - lend money/collect interest.

Nov 2, 2011 5:07PM
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I have had the same checking account with them since 1997. When they start added charges to me i will move on to something else as they have no loyalty what so ever so why should i? Also the banks would'nt be doing this crap if the bailout did'nt happen. No company is to big to fail there is always another to fill they void let them fail and lets start over

 

Nov 2, 2011 4:58PM
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Unfortunately a billion dollar or so loss for B of A still does not make them stop the bonuses to the upper management. They need to stop being greedy and let the losses stand and leave the customers alone. They do not need more fees.  NO bank does.They need to absorb some losses for the common man. Show that there greed  doesn't prevail.
Nov 2, 2011 5:18PM
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You can 'bank' on Bank of UNAmerica getting even with the people for speaking out against the Debit Card Fee.  They will jack up other fees on their "loyal" account holders in another manner.  I wouldn't be surprised if you don't see fees for Direct Deposit Transactions.  Because if you AVOID those, then they can nail you a monthly fee for NOT having Direct Deposit (one of their fee waivers). 

 

4.4 BILLION DOLLARS they paid out in just BONUSES last year.  If they had just paid HALF that amount, they would have easily absorbed their losses for the debit card transaction fee law for the entire year.  If those fat greedy money sucking PIGS at the trough would have done with LESS.

 

But, that doesn't happen with the weathiest and the greediest.  Even if they make decisions that will potentially KILL their company, if they can get FAT BONUS checks, they dont' care.  And, if they get fired for ruining the company, they will enjoy 10, 15, 20+ MILLON dollars as a "get the hell out of here" payment.

 

LEAVE Bank of UnAmerica and let them FAIL.  Show the rest of those greedy PIGS in other companies that no company is too big to fail and what AmeriCANS *will* do to those who try and screw us.

Nov 2, 2011 5:13PM
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Ye s B of A keep it up.  Keep up the ridiculous salary and bonus's.  You will lose all your deposits.

I really don't think anyone will miss you and your 0.1% interest on savings. I certainly won't miss your arrogance.

Nov 2, 2011 5:17PM
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Maybe they should look at what happened to Netflix.  Sometimes they just need to take it on the chin before the message gets across before these greedy idiots get the message of stop being so greedy.  No one has any problem with a company making a healthy profit but gouging is not tolerated.  The next ones in line are the Cell phone companies. 
Nov 3, 2011 10:12AM
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The banks backed off the debit fees because of customer pressure. OWS "people" had nothing to do with the Bank's change of policy. Moreover, I don't think any Bank would want the OWS "people" as customers.
Nov 2, 2011 7:14PM
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So much talk about anti profit.  Down with success.  United States to become United Welfare States.  Bank bash all you want but the first place the Government will go to have someone buy up a strugling FI will be one of the big Banks.   In Banking, Bigger is better.   Another point that most people seem to miss is taxation.  Banks pay taxes and lots of taxes on big earning.  They also distribute dividends to shareholders on earnings and anyone with a 401k likely has an ownership in Bank stock.  Credit Unions pay no tax.    Seems like people won't be happy until every company or Bank or whatever no longer makes money.    So then what?? Where does the money come from the build new buildings, buy new equipment, take advantage of new technology.  Oh wait, why bother with new technology when corporations or Banks won't have the money to buy it.     Oh, why get an education and a good job only to be put down by those don't have an education and job.     What a bunch of winers and losers.    Wake up poeple, Countries need strong and profitable corporations and Banks to survive and prosper Globally. 
Nov 2, 2011 11:02PM
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I don't like all these  fees either.  But the bank can't give away services for free.  I don't have a problem with them charging me for a service that I want or need.  Last time I checked,  my haircut wasn't free, nor was the plumber's visit or the financial planners fee, or the lawyer's services, etc.  You get the idea.   If you don't like fees, then move on.   Plenty of people will stay because they don't mind the fees. 
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