How Bank of America quietly steals your money

[incosta]

TL;DR. Bank of America charged me a “Monthly Maintenance Fee” of $12.00 on my checking (debit) account twice during last year, even though my monthly balance was never below the required minimum to avoid such fees. Both times they reversed the fee, after I called, explaining that it was a software error. Except after it happened the second time, I don’t believe them. If you are BoA customer with a checking account, it’s a good idea to check if you have been charged similar fees as well.

At the end of the day today I went to my BoA checking account to see the balance. Right away, I noticed “Monthly Maintenance Fee” of $12.00 charged last Friday. I have been BoA customer for many years (actually I was a Fleet bank customer since late 1990s, and then became a BoA customer when Fleet got purchased by BoA). I know the rules about what to do to avoid the maintenance service fees. Some time last year, when examining my online statement, I found a $12.00 service fee applied for no reason. I called their customer service, had them apologize for the mistake and the fee reversed. Back then I decided it was indeed some sort of a software glitch, as they explained, which BoA, being a big bank with millions of customers like me, will soon fix. I almost forgot about the case when I had exactly the same fee happening again today, over six months after the original case. They of course claim they will investigate (just like they did last time) but this time I have all reasons to believe it’s not an error which was unknown to them.

Their plan is simple: how many of us have time to examine hundreds of transactions most of us have every month listed on a statement, and notice a small $12 fee? Those few who, like me, notice a wrong fee and call, do get it reversed. The rest of us get charged the “maintenance fee” - for no reason. Nice plan, isn’t it? And they can always blame the software, and promise to investigate.

How many millions of dollars they wrongfully charged over the last year (as I explained earlier, this happened to me first over six months ago), only Bank of America knows. But it does know. They have tens of millions customers with checking accounts, and I refuse to believe I am the only one who had been charged like this and called.

So, if you happen to be their client with a checking account, maintaining your monthly balance above the required minimum (it varies state by state) it’s a good idea to search for such transactions. As far as I am concerned, I am closing all of my BoA accounts as soon as I technically can. They lost all of my trust, and I refuse to deal with a bank like this.

[brudgers]

Last November, BOA forgot to mail my mortgage coupon. Fortunately I realized that I hadn't paid, but when I went online I couldn't find the physical address to which I should send payment, only the option of starting direct withdrawal from my account. So I ended up pulling an old statement and sending payment to the correct address.

Then the next month, I didn't get a statement. So I sent physical payment again through the mail and used the feedback option...twice.

I got two different stories from each customer service representative. One said they sent the coupon, the other said that they hadn't due to software issues. At that point my suspicion was more or less confirmed that they wanted to encourage me to switch to electronic payments - and felt that a missed payment penalty might encourage such a switch.

The way I see it, there's an MBA somewhere who decided that there was more profit in not sending statements through the mail and more profit if they could collect a late fee and more profit if they could accidentally deduct additional money from my account unless I caught it.

ATT did the same thing with my business phone.

Both the local cable companies do it.

It's just the way business works these days.

[incosta]

I used to be able to pay mortage online when it was BoA mortgage (it no longer is). Can't you do the same thing?

Back t the story: I am going to switch to a local bank from BoA as result of this. I hope they do treat their customers differently.

[grok2]

The appropriate way to take care of this is to file a complaint with the Consumer Financial Protection Bureau (CFPB) which was created by the US government to look into issues like this. http://www.consumerfinance.gov/

[incosta]

Thank you. This is probably the most valuable advice I got about the issue here. I will file a complaint there.

[opendomain]

I really hate to say this, but the best answer may be lawyers. If you can find a few other friends that this happened to, then file a class-action. Do not close our account - you need to prove to the court that they are doing this for multiple people. Then the fed will get involved

[damoncali]

There are plenty of banks with free accounts. The big regionals tend to be good, as are credit unions. USAA is flat-out the best on the planet if you can get an account with them.

[kayhi]

+1 USAA - able to withdraw from any ATM and have 15 dollars in fees reimbursed along with being able to deposit checks via your smart phone

[israelyc]

This is awesome: http://www.youtube.com/watch?v=js0fP9zk7AM This guy foreclosed on BoA :)

[blakerson]

I've had the same thing happen at least twice.

Count me in for whatever the consensus action is, whether that's complaining to the CFPB or a joining a class-action.

[incosta]

We need then to get in touch - even for the CFPB I cannot just reference someone by an online alias. Please write me to m3dsa [at] hotmail.com.

[creativeone]

Should https://www.billguard.com/ be here?

[maybird]

It's not just banks, I've had the same thing happen with my cellphone bill.

[ahi]

For personal finance, use a credit union.

[biopharma_guy]

I have gone through the same pain with BOA and finally I had to close my account last year. But the funny/upsetting thing is that even if I closed my account, BOA kept on sending monthly statement charging those monthly fees for several months. I had to keep ignoring it till they completely stopped sending those statements. I went to the local BOA office to complain and the Banker did not give a damn at all. I have a feeling he thought that a tiny customer who just transacts few hundred dollars a month can not affect the bottom line of the bank and ultimately his job. And during that time I kind of felt that sometimes the big bank can play a cruel joke and get away with it on tiny customer like us. You know what , I closed my account went ahead and opened my checking and saving account at a local credit union bank and I can't say how happy I am. Hey, it is your money. But watch out! some big banks are very good at ripping off small customers by charging in fees (nickel and dime, heck now a days they have started charging above 10 dollars forget about nickels and dime). As a small fish you are more vulnerable to big predators in the ocean. So beware. Keep eyes open.

[fatjokes]

I think you're confusing incompetence for malice here.

[samstave]

NOPE.

Banks are malicious. They are very very competent at stealing money.

[PostOnce]

A popular adage, brought up each time something could feasibly be attributed to malice; sometimes it is malice. There is much idiocy in the world, and there is much malice. Given BOA's track record, I'm more apt to attribute this sort of scheme to the latter. Perhaps I am cynical.

[yashchandra]

I don't think there is any confusion. BOA is definitely one of the worst offenders.