Bank Of America Making More News
A couple of weeks ago I wrote about Bank of America agreeing that they wouldn’t be charging people on overdrafts of $10 or less, which I thought was pretty weak, but it was at least something. They also reduced the overdraft fee to $25.
Last week they announced that they wouldn’t be hiking up interest rates, which was a nice announcement as many banks were unwilling to make that commitment in lieu of the new credit card legislation that’s impending.
Today they announced that they will be adding annual fees to about 1% of their credit card holders, with those fees ranging from $29 to $99 depending on whatever goofy criteria it is they’re coming up with. The thing is that they’re saying this is a “test” to see how people respond, which sounds weird because the only two choices are to accept the fee or close one’s account. My gut feeling is that they will be imposing this on at least 50% of their card holders before this is over. One of the things that this new announcement means is that people who pay off their cards every month, which has always been recommended by financial advisors, will be some of the people who will suddenly see a fee.
Once again, it brings this question back as to whether people should cancel their credit cards or not. My position hasn’t changed on this one; I think there are times when people have to either decide they’re going to stop allowing credit card companies push them around or realize, if it’s the case, that they can’t control their spending when they’re trying to stop spending so much by cutting up their cards.
Anyway, you folks that have Bank of America cards now join people who have other cards where we’ve had to make decisions as to whether we’re going to keep them or not. Good luck with your decision.