MEMPHIS, TN -- Bank customers beware; pretty soon you could be hit with a long list of new fees.
"Bank of America" and "Sun Trust" are among the companies raising rates for things like overdraft fees and transferring funds.
To offset the mortgage crisis and people defaulting on their credit cards, credit counselors say banks are trying to gain revenue in other ways.
Starting June 5, 2009, “Bank of America” is raising the monthly maintenance fee from $5.95 a month to $8.95 a month on its "My Access” checking accounts if you don't have a direct deposit. The bank is also going to charge a new $35 fee if your account is overdrawn for more than five days.
“Sun Trust” is making slightly smaller increases, from $35 to $36 for stop payment and insufficient funds.
“These are the people that are the banks’ livelihood that have bailed them out for poor decisions that have been made. Now these banks are going back and penalizing them for no given reason. It’s just not right," says credit counselor Robert Hanusovsky.
“Regions Bank” is now charging a monthly maintenance fee on checking accounts that ranges between five to $20 if you don't receive electronic statements.
Banks are also accused of raising interest rates to more than 20 percent for a third of all credit card holders. According to a February 2009 “Federal Reserve” report, some rates are now as high as 41 percent. So what can you do if this happens to you?
"Call the charge card company and talk to them about it. See if they really plan on keeping their interest rate that high ask them to reduce it back. If you have a good credit history and there are no delinquencies they will likely reduce it," says Hanusovsky.
Experts say it’s important to pay off your monthly balance to avoid interest at all. Also, closing a credit card will lower your credit score.
According to that “Federal Reserve” report, banks are also accused of sharply increasing fees for late payments and shortening the time between statement delivery and due date. As part of Obama's "Credit Bill of Rights", a 15 percent cap on interest rates was proposed, but that amendment was voted down in congress.
