Economy

Customers angry after Bank of America tightens free-checking rules

Customers angry after Bank of America tightens free-checking rules”

Bank of America has eliminated its free checking account program, a service that was popular with many low-income customers looking to avoid extra fees for having a low balance.

According to the WSJ report, those who use the eBanking service must keep at least $1,500 in their account, or have a direct deposit of $250.

A Change.org petition has now gathered more than 45,000 signatures as people are trying to convince the bank to keep the old accounts.

A Bank of America spokeswoman has said the $250 monthly direct deposit requirement, which equates to $3,000 a year, is one of the lowest requirements in the industry.

The accounts are reportedly expensive for banks to maintain, even though they do profit off overdraft charges. "Bank of America was the bank of every American with a dream". The bank said the e-banking accounts were not created to target lower-income customers. Other eBanking customers were switched over as early as 2015.

More news: 1 killed, 7 taken to hospitals after Kentucky high school shooting

Ms. Lo didn't expect to meet the new balance or direct-deposit minimums needed to avoid a fee because she is paid on commission through PayPal Holdings Inc., earning about $30,000 a year.

News of the bank's decision did not go down well with some customers. "Bank of America was known to care for both their high income and low income customers".

During a conference call with Wall Street analysts last week, Paul Donofrio, Bank of America's chief financial officer, said the US banking industry has had little to no increases in deposit rates for traditional banking in recent years. "Bank of America was one of the only brick-and-mortar bank that offered free checking accounts to their customers".

Introduced in 2010, the eBanking account charged customers an $8.95 monthly fee if they received monthly statements in the mail and used tellers instead of automated teller machines and online banking. "That's a great value and our client satisfaction scores are at all-time highs".

Bank of America in 2011 also faced a backlash when it planned to charge a $5 monthly fee for making purchases with a debit card.



Like this

loading...
loading...

Latest


23 January 2018
Toronto Dominion Bank Boosts Stake in The Coca-Cola Co (NYSE:KO)
Moss Kenneth A sold $583,595 worth of stock. (NYSE:PFE) has "Overweight" rating given on Saturday, September 5 by Piper Jaffray. In related news, insider J Alexander Douglas, Jr. sold 338,009 shares of the stock in a transaction on Wednesday, November 8th.

23 January 2018
Snoop Dogg Donates $35K Toward Colin Kaepernick's 'Million Dollar Pledge'
The $15,000 addition was announced on Kaepernick's Million Dollar Pledge website . To reach that, he launched a 10-day drive to raise the final amount.

23 January 2018
Senate Advances Measure to End Government Shutdown
Instead, the two sides have spent the weekend digging in and getting their message out, blaming the other party for the shutdown. The US counts 690,000 people now enrolled in DACA . "We want to fix the problem and the root cause of the problem".

23 January 2018
Nomura Increases Vipshop (VIPS) Price Target to $19.00
Vontobel Asset Management Inc. owned about 0.08% of Vipshop Holdings Limited worth $4,650,000 as of its most recent SEC filing. Vipshop Holdings Limited shares increased 16.96 percent over the past week and rose 35.57 percent over the previous month.

23 January 2018
BJP credits PM Modi for economic growth — International Monetary Fund forecast
He said: "We will need to see how it impacts global trade, how other trading blocs react to that, but I remain optimistic". The World Economic Forum officially gets underway Tuesday with Indian leader Narendra Modi delivering the keynote speech.

23 January 2018
EU removes Panama, seven others from tax haven list
The United Arab Emirates, Tunisia, Mongolia, Macau, Grenada and Barbados were also removed from the list of countries that encourage tax dodging practices.

23 January 2018
Arsenal and Man Utd agree Sanchez-Mkhitaryan swap
Sanchez had entered the final six months of his contract at the Emirates Stadium and had also been linked with Manchester City and Chelsea.

23 January 2018
Ex-Yankee Alex Rodriguez replacing Aaron Boone on ESPN
ESPN brass have been interested in Vasgersian, a rising play-by-play star at Fox and MLB Network, for months, said sources. A-Rod has been praised for his broadcasting abilities as an analyst.

23 January 2018
Monday's forecast: Another warm day, possibly rainy night
At night, the mercury will dip into the upper 30s to low 40s and some rain will sweep into the area after midnight. After the system moves through, cooler temperatures and north winds are expected on Tuesday and Wednesday .

23 January 2018
Dublin Airport passenger numbers hit new record high of 29.6 million
As a top travel destination in 2018, we are in a position to see even more tourism growth during our tricentennial year. Passenger numbers rose by 6% from the previous year - the seventh consecutive year of growth at Dublin Airport.