Bank of America charging some people an annual fee?

[smc733]

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@Cory wrote:

Okay guys, calm down.

Don't let them push you over the edge. I would just kept the accounts open and try to negotiate with BofA in the months to come. This might mean paying the AF for the first time, and telling them that you are not going to pay it again the next year. I would write them a letter or send them an email informing them. If they don't agree to work with you, then the next time tell them you want to cancell the card. I would cancell the card just yet. Wait it out. Tell this is a one time courtesy! In the mean time, stop applying for new credit so you when they soft you again, I would tell them you know that they are monitoring your credit reports and so are you.

Cory

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Well I was told that I'm not going to get hit with the AF, so I personally should be safe.  This bank is just driving me up a wall, constantly pulling tricks on its customers, like these new checking account fees they're trying to test.  If I lose my grandfathered "no fee" MyAccess checking, I am going to be PISSED with a capital P.

[Anonymous]

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@veracious wrote:

Not sure if I have the time frame right but I think during the 1990's most credit cards had an annual fee.

  Maybe BOA is trying to expand revenue by doing this.

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Banks introduced annual fees at the beginning of the 80s in response to spiking interest rates - at one point (early 1981, IIRC) they were paying almost 17% on 6-month CDs while state usury laws limited credit card interest to 18%. Just about every bank jumped on board. By the mid-80s, you couldn't find a Visa or MasterCard that didn't charge an annual fee.

Then, in 1990, AT&T introduced its Universal Visa card. To promote the card, AT&T promised that the 1st million cardholders would pay no annual fees - ever. That was a big deal at the time, & they were swamped with applications. Then they made no annual fees a permanent feature of the card, & most of the other banks caved in & dropped their AFs. (Today, the Universal Visa card is part of Citibank's portfolio.)

[veracious]

JimB,   thanks for the clarification.

I noticed from one of your other posts that you've been using CC's since the 1970's.

  I thought it  was the 1990's but you are absolutely  right., now that I recall.

[jonmyers]

An AP article came out last night that sheds a little light on the subject.  According to their spokesperson, less than 5% of their credit card holders will be accessed the fee.  They are targeting higher risk folks, and those who don't have any other relationship with the bank (ie, those with *only* their credit card).

[lovely222]

"Higher risk" - really? This is their way of kicking out us lowly folk, I see. I am canceling this card. 

[vish1]

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@jonmyers wrote:

An AP article came out last night that sheds a little light on the subject.  According to their spokesperson, less than 5% of their credit card holders will be accessed the fee.  They are targeting higher risk folks, and those who don't have any other relationship with the bank (ie, those with *only* their credit card).

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What a beautiful contradiction from BofA:

I read somewhere that they are either charging fee or closing FREE checking accounts

Now when I add that to this article, it seems like close the checking account first then apply AF on credit cards coz thats the only relation with BofA... wonderful

[smc733]

So as long as I'm with the bank I should be fine?  That's good news.

Can someone link to this article?

[lovely222]

I saw this article on ABC News: http://abcnews.go.com/Business/wireStory?id=12924650. 

[DI]

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@lovely222 wrote:

I saw this article on ABC News: http://abcnews.go.com/Business/wireStory?id=12924650. 

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The AF is being added to BOA's high risk customers only is my understanding of the article. 

[ILBrian]

just wanted to note I did get the notice for a 3 year old BOA World Points card.... didn't use very much but I do carry a high debt load

cancelled the card the day I got the letter. junk.