As expected, financial institutions aren't shrugging off new financial regulation, but quietly hiking the costs customers face
Earlier this month, when Bank of America and others reversed their plans to create a fee for debit card usage, some consumers cheered. They felt like their complaints were heard, enabling them to escape additional fees after all. Such optimism may have been a little premature. Banks aren't simply accepting that they will make less money from their retail customers due to new financial regulation. Instead, they're making up that money in other ways, quietly adding new fees for services or increasing the size of other fees that already exist.
A New York Times article by Eric Dash today provides some examples of the fee changes:
Need to replace a lost debit card? Bank of America now charges $5 -- or $20 for rush delivery.
Deposit money with a mobile phone? At U.S. Bancorp, it is now 50 cents a check.
Want cash wired to your account? Starting in December, that will cost $15 for each incoming domestic payment at TD Bank. Facing a reaction from an angry public and heightened scrutiny from regulators, banks are turning to all sorts of fees that fly under the radar. Everything, it seems, has a price.
Who could have seen this coming! Banks didn't want to forgo billions of dollars in revenue after all. This should shock no one.