Bank of America (NYSE: BAC) is experimenting with charging customers new annual fees on previously fee-free credit cards for approximately 1% of its customers. Many consumers have reported online that people are receiving fees between $29 and $49, with the highest report annual fee being sent out being $59.00.
Bank of America is essentially testing the waters to determine what sort of annual fees their customers will stomach before cancelling their cards by charging customers different levels of annual fees. Depending on what the cancellation rate is for each level of payment, Bank of America will select the annual fee that is most profitable to the bank and then likely start charging all of their fee-free credit card customers that annual fee.
In a recent statement that Bank of America made to the associated press, a company spokesperson said, “We’re testing this to see what the feedback is, in terms of any plans going forward, we haven’t made any decisions.”
Consumer advocates have advised consumers to call Bank of America and argue against the annual fee. Some have suggested that if Bank of America successfully introduces annual fees to formerly fee-free credit card customers, other banks like Chase, Citi, Capital One and American Express will roll out similar fees to their customers.
Some suggests that consumers carry around three or four different credit cards in the event that one of their cards begins charging them an annual fee, that way, they will have other cards to fall back on if they decide to cancel one because of a new annual fee.
