Bank of America begins charging annual fees on some credit cards
October 16th 2009 11:32
Signature Tune
From: The Baltimore Sun
Bank of America has informed a small group of its credit cardholders that they will be charged an annual "membership" fee starting in February 2010, according to the Associated Press.
Customers could reject the fee by the Dec. 16 deadline, but then the account would be closed, according to the story.
Apparently the fees, which will range from $29 to $99, are targeted at those who rarely carry a balance or incur penalties.
This is exactly the kind of tactic that banking experts predicted credit card issuers would try. And unlike the friendly incentive Andrea Walker's credit card company offered her, this punishes consumers AND the credit card company alike.
Why so?
Because I'm sure that some cardholders are going to cancel as a result of this new fee. And that means that Bank of America and the card networks won't be collecting interchange fees that they charge merchants, either.
That's why I don't feel bad for using my credit card for convenience (I don't have to carry as much cash) and consumer protection. And, if my issuer starts charging an annual fee, I'll take my business elsewhere, looking for better cards through bankrate.com, lowcards.com and creditcards.com
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Comment by Michael 2
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Those CEOs and such do deserve their bonuses though. I think it takes a real set of cojones to demand even more money after you pissed the last lot away on obviously bad loans.
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Roll on the second crash.
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