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BofA Tacks On Fee For Some Cardholders

If you have a Bank of America credit card, new fees could be coming your way.

Bank of America says the fee will impact less than 5% of cardholders.BofA recently sent out notices to an unlucky group of customers informing them they will be charged a $59 annual fee. The charge will show up in credit card statments issued in May.

The notices were sent to less than 5% of the company’s credit cardholders.

Bank of America targeted “customers who would not qualify for a new account today at their current rate without an annual fee,” bank spokeswoman Betty Riess says.

Typical cardholders affected carry balances near their credit limits, tend to make only minimum monthly payments, have made late payments and have a lower than average FICO score, Riess says.

Their cards also carry about a 14% APR.

“We believe this is a fair price for the value customers receive in having continued access to their current credit line and ensures that we are covering our costs to provide and maintain the account,” she says.

How do we interpret this?

BofA realized it shouldn’t have given cards with those terms to these customers. It can’t charge the same kinds of fees it could pre-Credit CARD Act. So to generate revenue, Bank of America is going to push these almost-maxed-out customers into paying yet another fee on top of their interest payments and possible late fees or force them out.

You can opt out of paying the fee, but of course, that means BofA will close your account.

If you were chosen for this fee, either contact BofA and see if the company will opt you out or get another card. There’s no reason to pay this fee if you don’t have to.

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Comments (6)
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6 Existing Comments
  1. Ian said:
    on February 26th at 12:52 am

    I have two credit cards with BofA, one of which I’ve had since 2004. I would leave them in an instant if they started charging me a yearly fee.

  2. Mary Ann said:
    on February 26th at 02:48 pm

    I agree. I am a “preferred customer” so the rep said there would not be a fee on my two credit cards.

  3. Terrin said:
    on February 26th at 09:12 pm

    I’d leave the Bank anyway. It is largely responsible for the economic meltdown. Further, BOA nickel and dimes you to death. Before the change in credit card laws, it would engage in dirty tricks like changing the date payments were due for no reason other then to catch people automatically paying on a certain date off guard.

  4. A.Bundy said:
    on February 28th at 06:44 pm

    agreed with Terrin. BOA can fool me once…shame on them.

  5. Jim said:
    on March 9th at 11:10 am

    I recieved the letter and have a high FICO score, no late payments and $60,000 credit line. Spent more than $1M on that card since 2000. I called BoA and they did not relent. Obviously moving to another bank. Not sure why they are willing to lose the volume/merchant fees. Sure, i have a rewards card under an affinity program so they are paying out 1-point-something percent to me and the charity, but they are still making a profit on my account.

  6. Cindy said:
    on March 26th at 04:11 pm

    I think what they said is funny because i got that letter after being a boa cc customer for 5 years. I never carry a balance–always paying the full amour on time with not perfect, but good credit. I’m canceling the card!