Running Up Fees and Credit Card RatesHigh Fees and Interest for Consumers, Huge Profits for Bank of America
America’s largest bank is taking advantage of its size to run up fees and credit cards rates—reaping record-breaking profits and leaving consumers to foot the bill:
- This summer, Bank of America announced a raise in its ATM fees for non-customers at its branches in all markets outside of Chicago from $2 to $3—higher than any other major bank in the country. In fact, Bank of America’s market-topping ATM fees could be driving up ATM fees at all banks.
- With credit card interest rates and fees that can exceed 30%, Bank of America’s credit card practices are among the worst in the industry. Bank of America also funds payday lending institutions, like Advance America, that trap low-income households in debt. Some payday lenders charge interest rates as high as 400%. Bank of America’s own overdraft fees can rival those of the payday lenders.
| “I’m sure a lot of other institutions will come right behind them, and say, ‘If they can get $3, so can we.'”
—An executive at First Horizon National Corp, “Higher Bank of America Fees To Raise Rivals’ Costs,” American Banker, August 3, 2007
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- Bank of America’s profits topped $21 billion in 2006, ranking the bank with top oil companies. More than half of Bank of America’s profits came from fees and interest charges on consumers and small businesses. Bank of America CEO Ken Lewis took in $99.8 million last year, including $77 million from selling his stock options.
Driving Up ATM Fees at All Banks »
"Unfair and Abusive" Credit Card Practices? »
Exorbitant Overdraft Fees »
What Bank of America Doesn't Want You to Know »
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