Bank of America Is Charging You for Debit, Watch Out for Other Hidden Fees
Overcharge Fees and Other Penalties May Cause You to Fall Into Debt to Your Own Bank Account
by Kevin Schneider on September 29, 2011
Bank of America has just announced plans to charge $5 every month you use your debit card. While the service had previously been free, it is important to pay attention to your bank statements so that you aren’t taken advantage of. Wells Fargo, Chase, and other major banks have all begun adding new fees to previously free services, making sure you know about them can save you a lot of cash.
There are a few reasons why large banks have begun to charge for free services. Since the housing bubble burst, the Department of Justice has pressed charges for mismanaging their mortgages and other alleged crimes. Federal regulations have also come into place which are designed to protect consumers. One of these keeps banks from charging your largest transaction first.
Think about this: You have $300 in the bank. You buy a $50 shirt, a cup of coffee, lunch, and later you forget about your previous purchases and buy a $300 television. In the past, banks would have charged you for the TV first, that way you get charged a $35 overdraft fee for the TV and all the previous purchases as well. It’s the difference between paying $35 and $140. Thankfully, this practice is now illegal, but banks have begun trying to recoup the money they used to get through this practice in other ways.
It is important that you pay attention to these changes, as they can cost you money when you’re not looking. For example, Bank of America now charges $7 for a checking account unless you deposit at least $1000 in it per month. If you don’t pay attention to the mail you receive, and use your debit card too, that could add up to $144 in fees per year that you can’t account for.
If you find yourself lost amid the rules in regulations, be sure to contact financial advisers for help. While asking your bank should be a good idea too, it may be best to try a neutral third party. A bank may not be lying when they tell you something, but that doesn’t mean you will learn about the options best for you, and not just the ones best for the bank.
When you have immediate financial difficulties, perhaps from overdraft fees or other hidden charges. Getting a cash advance can help you pay them off before they escalate into a mountain of a problem. With a cash advance, you can be sure to avoid any hidden charges. Federal law requires all lenders to provide you with all information before you ever have to sign anything.
Since 1997, CashAdvance.com has been the most established and trusted name in the cash advance industry, connecting over a million consumers with payday loans from its vast network of reliable lenders.
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