Banks boosting fees
May 28, 2009 | USA Today, alternatives, industry | Comments (0)And as usual, USA Today is all over it:
But even as outrage was building over credit cards, banks seized upon another way to squeeze profits out of struggling consumers: higher checking account fees. These fees can add up to hundreds of dollars before consumers know there’s a problem.
As the economy struggles to climb out of a recession, banks are extending some of their most profitable — and controversial — credit card practices to checking accounts.
For example, banks are making it easier and more punitive for consumers to spend more than they have in their checking accounts, just as they allow consumers to spend past their card limits and charge them a steep fee for doing so. Some analysts believe that new credit card restrictions will only accelerate fee increases on bank accounts.
The key is transparency and disclosure. There are plenty of banks for consumers to choose among.
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