Bank of America to institute new fees for more profit
New credit card legislation has put restrictions on banks and issuers from raising fees and penalties for members, cutting their revenue in turn. However, banks are showing that they are willing to raise other fees in order to maintain a steady profit.
This week, Bank of America announced plans to create new fees to make up for the lost revenue due to legislation, such as the Credit Card Accountability, Responsibility and Disclosure Act, according to WGAL-8 in Pennsylvania. Customers who do not meet a minimum balance on their credit cards will be charged a fee, Bank of America representatives said.
The company is giving customers options, however. For individuals who do not want to be subject to a minimum balance requirement, they can agree to pay a monthly fee, WGAL-8 reports. Fees will also be reduced if customers use online banking services, such as bill pay and statements, to stay on top of their accounts.
Analysts say the institution of these fees shows there are still loopholes in the CARD Act that banks will continue to take advantage of until the legislation is refined.