e-Vents

[ Tuesday ]

 

Bank of America Strikes Again
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With the consolidation still going on in the banking industry, consumers are really beginning to feel the pain of the mega-banks. Bank of America's $34.6B acquisition of MBNA America has raised the level of dissatisfaction to new heights. BOA has allegedly been raising rates on customers, charging new fees, and mailing ambiguously-worded balance transfer offers, and closing card accounts without notifying customers.
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It should come as no surprise that consumer groups petitioned the Federal Reserve to turn down the merger of the two big banks. Another issue was with the sharing of consumer data among the institutions and their affiliates. Now, with a period time since the merger was completed, horror stories are beginning to surface. BOA 'Customer Service Representatives' are directed to not give credits or refunds to complaining customers, according to one source, in an effort to gain incremental revenue through any means possible. With balance transfer fees, for example, the transaction fee was raised from 3 percent of the amount being transferred, to 4 percent and no maximum amount for the fee. Less than a year ago, the fee was typically capped at $50, $60, or $75. As the spread has remained low on interest rates, banks have raised every imaginable fee, including overdrafts, late charges, default rates, check copy charges, and even in-person account questions. Ah, the promise of automation apparently did not lower costs for the consumer. Especially when it costs the bank approximately 40 cents to process an overdraft, and the fee to the customer ranges from $29 to $45 in some markets.
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The best plan for consumers is to vote with their wallets and find another financial institution. And when a problem occurs with a national bank, send a complaint to the Office of the Controller of the Currency, along with e-mails to your Federal Reserve Governor, Congressional representatives, consumer agencies, and news media outlets.

MM [19:35]