Bank of America plans to add an annual fee of $59 to credit card accounts that carry significant balances beginning on April 11, according to a report from the Los Angeles Times. In particular, the bank says this new charge will be tacked onto the accounts of consumers who would not qualify for a new account under its tighter lending restrictions.
“I feel like an indentured servant,” Sue Laman, a customer who has $30,000 in credit card debt with the bank, told the newspaper. “But what can I do? I can’t refuse their annual fee. They know I have no choice except to pay.”
The change will affect about 5 percent of the lender’s roughly 40 million credit card accountholders, and should help the company generate about $118 million in new revenue, the report said.
Many banks are now adding new fees to credit and debit card accounts in an effort to drive revenues in light of greater federal regulation of the industry.