BANKING ON IT. Bank of America, the giant bank everyone hates but is joining resentfully, has announced that they are further penalizing those who haven't submitted to their dominance yet by increasing non-customer fees on ATM withdraws to $3. The $1 increase was introduced quietly over the summer, and is sure to prompt other banks to follow suit.
Of course, those who will be most affected by the hike are low-income, working families. In many areas, Bank of America is the only option for cash, especially if you're out of town or otherwise unable to get to your home bank to make a withdrawal. And for working-class Americans, getting to a bank during lobby hours just isn't possible, and neither is shelling out $3 just to get cash. In a joint statement from Americans for Fairness in Lending, California Reinvestment Coalition, Consumer Federation of America, Consumers Union, Service Employees International Union, and the Woodstock Institute write:
No one disagrees that consumers can-and should-pay the fees that are necessary to provide them with vital financial services. However, we call on Bank of America and other banks to explain why-even as fees for nearly all other financial services decline over time as the scale of their use increases and related costs decline-ATM fees continue to "defy gravity" and are now poised to rise by another 50 percent.
We believe the temptation to squeeze out new profits by gouging consumers with unreasonable and unjustified fee hikes is one that should be resisted by our nation's financial institutions-and meet resistance from both consumers and Congress.
Bank of America says the hike is necessary for them to continue improving infrastructure – i.e., putting additional Bank of America ATMs in those few remaining outposts that don't have one yet – and to "reduce wait time" for our their customers. What it will surely do, though, is push those who have resisted switching to a major national chain bank into leaving their local banks or credit unions (which often offer better rates and few penalties) or it will just force working-class Americans to suck it up and pay exorbitant fees.
--Kate Sheppard
