Consumers are being hit with a number of new fees by banks and the membership-shopping giant Costco.
Last week a Bank of America plan became public that it would start charging a $5.00 monthly fee for its customers who use their debit cards. The fee would begin next year, according to an internal memo distributed at Bank of America.
Now there’s news that Citibank will charge its customers $15.00 a month for checking accounts if their balance falls below $6000. A basic-annual membership to Costco will cost $55.00, an increase of $5.00; executive memberships will increase by $10.00 annually. The retailer says increasing costs for grocery and clothing inventory is to blame.
The Bank of America debit-card fee hasn’t settled well with many consumers, and if that wasn’t bothersome enough, the bank’s website has been suffering repeated glitches for a sixth day.
BofA has refused to say what’s wrong, but a bank spokesperson has insisted the website is not the victim of a hack, and that the problem is internal. Whatever the cause, it has become the type of buzz that is alarming consumers and lawmakers. It’s unclear if there has been a sudden rush to move money from Bank of America to other financial institutions, however the idea is certainly being discussed.
Sen. Dick Durbin, D-Ill., bluntly told customers to create a run on the bank.
“Bank of America customers, vote with your feet, get the heck out of that bank,” said Durbin while speaking on the Senate floor. Durbin called the debit-card fee an "outrage."
And investors are showing a lack of confidence in Bank of America. It's stock price has been crushed; now half what it was a year ago.
What do you think? Do you remain confident in Bank of America? If you're a customer will you change your shopping habits, and avoid using your debit card? If you're a Citibank customer will you pay $15.00 a month for checking? And what about Costco? Is $55.00 a year a good value for your money?