Here Come The Bank Fees
Faced with the loss of many millions from the ending of all those bank fees due to being overdrawn, many banks are coming out with new ways to stick it to consumers so that they can build up their coffers once more. Of course last November I wrote about Citibank and Bank of America raising checking fees, but obviously that wasn’t enough.
What’s coming? There will be higher fees on balance transfers to other cards and higher fees for cash advances as well. Many of the large banks have totally thrown out the thing where you can pay your bill for anything you purchased in that month period without incurring any fees, which is the biggest scam in the world. You get better rates from loan sharks sometimes.
Something else some banks are using to stick it to you are fees for receiving paper bills. Of course this one isn’t just banks, but it’s sneaky and a way to get you to forget to make your payment so they can hit you with heavier late payment fees. I’m happy so far that my bank hasn’t gone this route, but there’s nothing saying it might not. These fees seem to be ranging anywhere from $1 a month to the $8.95 that Bank of America‘s about to hit some people with; that’s not fair at all. Their explanation is that if you signed up to pay bills electronically, you should do everything electronically; weasels.
Get this one. HSBC is not only charging a fee to open a line of credit, which isn’t all that bad, but if you use it they’re going to charge you $10 a day to use it. That’s if you use it to protect you from overdrawing your checking account; what the hey? Now, not only will you get hit because you overdrew your checking account but you’ll get an extra fee for them to take it out of an account you hooked it to? That’s one of the worst cases of double dipping I’ve ever heard of. They’re saying other banks are doing it as well; who?
And Citibank, one of my favorite whipping boys, isn’t letting me down either. They’re coming up with creative ways of hitting you with other fees on your bank account that could end up costing as much as $30 a month in bank fees, where you might have only had to pay $3 before. They’re trying to encourage you spend your money for the right to not be charged; I thought the idea of banks was to encourage you to “save” your money. Yeah, many banks do this with your savings account if you haven’t done anything with it in awhile, but this just stinks.
Strangely, Discover and Chase aren’t doing anything to you for now, and that’s a welcome change. Then again, Discover’s always been a maverick and Chase has been doing pretty well ever since the bailout was paid back. Maybe the other banks need some new lessons.