We’ve all probably recently read about the furor over banks wanting to charge customers for using their debit cards. This potential charge would have affected almost every consumer including the patients and clients of Silkin Management Group clients. Fortunately there was enough outrage about this attempted new fee that the major (“too big to fail”) banks backed away from implementing it for fear of losing too many customers.
But many of these banks are still desperate for increased income and are looking for other, less obvious ways to increase fees. Readers of our various Silkin Management Group blog sites should be aware of some of these potential new or increased charges and see if their bank is implementing any of them. Here are some of the potential new or increased charges we ran across:
• Charging for replacing a lost credit or debit card. (Bank of America is now charging $5 for this, $20 if it is a rush delivery).
• Bank wires. These are often charged for, but many banks are greatly increasing the per-wire charge. I’ve noticed as much of an increase as 3 times the previous amount.
• Increased charges for ATM cash withdrawals.
• Charging for sending paper statements.
• Overdraft charges.
• Raising minimum account balances to qualify for some fee waivers.
• Higher monthly fees on many checking accounts.
Banks have recently lost about $12 billion a year in income due to recent rules reducing fees for credit card swipes and overdraft charges. They are also making less money on loans due to lower interest rates being charged. Losses are estimated on this at $8 billion. That’s a lot of money to make up for. It looks like they are going to try to get this money back one way or the other through the types of charges noted above. I’m sure they will be looking for additional “less obvious” charges as well to sneak by us. That’s why many people are changing to smaller banks that aren’t “too big to fail” and credit unions. As Alan Greenspan once said, “if they’re too big to fail, they’re too big”.
Silkin Management Group clients and other readers of our Silkin Management Group blog sites should keep an eye out for what their bank may or may not be doing that could cost them and their patients and clients more money.
Jack Hennessy
Silkin Management Group Consultant
For more information about Silkin Management Group, visit www.silkinmanagementgroup.com


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