Banks

Bank of America Grabs Windfall, Gouges Customers

If you’re wondering why Americans are angry at Wall Street and Washington, just look at Bank of America.

  • Bank of America is pocketing a $2.7 billion windfall from the new tax law that the Republican Congress passed and President Trump signed. The mega-bank just posted $2.4 billion in profits for the final quarter of 2017.
  • Instead of saying “Thank you!” to its taxpaying customers, it’s giving them the back of its hand. Calling a halt to its free online checking accounts—a financial lifeline for low-income customers—it will charge fees to account holders with low bank balances.
  • The new fees could swell the ranks of 9.6 million Americans without bank accounts, many of whom have to use expensive check-cashing services or, worse yet, exploitative payday lenders.

Fortunately, low-cost checking is still available from online banks, credit unions and the worker-friendly Amalgamated Bank.

Categories: Banks