Bank of America announced last week its plans to impose a new $25 monthly fee on its customers. But, even Forbes.com questions whether imposing a new, arbitrary fee is the right approach.
There are many reasons why Bank of America should show greater respect for its customers, rather than just believing it is “entitled” to a certain amount of profit:
- BofA was one of the Wall Street banks that engaged in risky, irresponsible mortgage practices that caused the 2008 U.S. economic crisis.
- BofA and other Wall Street banks took a $700 Billion bailout in taxpayer money, after causing the economic crisis.
- Although BofA agreed to comply with the Home Affordable Modification Plan (HAMP) and help distressed homeowners in return for the $700 Billion bailout, according to U.S. Treasury reports, BofA complies with HAMP less than 10% of the time.
- BofA is involved in the robo-signing scandal where banks filed documents of “questionable validity”, such as bogus affidavits, to wrongfully foreclose on consumer homes (rather than complying with HAMP and helping the consumers).
To be fair, Bank of America, like any business, has a right to pursue profits through responsible business practices. However, imposing a questionable new fee on consumers while refusing to honor its legal obligations does not seem to be a responsible practice.
In light of Bank of America’s history of mistreating its customers and gambling with the U.S. economy, consumers should send BofA a message. BofA needs to learn it is not “too big to fail”. Instead of submitting to BofA’s new fee, BofA customers should switch banks.