Despite public backlash, banks continue to increase existing fees and levy new ones

One of the first banks that were on the receiving end was Bank of America which is among the list of biggest banks in this country. As soon as the Federal Reserve curbed the interchange fees, the bank levied a $5 monthly charge for customers who use debit card for their purchases. Though Wells Fargo and JP Morgan Chase had similar plans in the pipeline, they retracted their move fearing the public backlash that the Bank of America faced.

However, this has not discouraged the banks from continuing with their experimentation. Since November 2011, Wells Fargo has been charging $15 for certain customers who have checking accounts with them. Customers who have at least three accounts (of various types) with the bank or maintain $7500 minimum balance in their account are exempted from this fee.

CitiGroup Inc is one of the other banks that have been imposing a fee on its accounts. As long as customers continue to maintain a minimum balance of $15000 in their account, they are exempt from the $20 monthly fee that is charged for other checking account holders. This balance is up from $6000 which was the norm till December last year. Customers who balance falls below the minimum specified by the bank have to also pay a $2 fee each time they use their card at a non-Citibank ATM.

Despite public outrage, Bank of America continues to impose a monthly fee of $5 for customers who use debit cards for their transactions. The bank has been testing this move currently in states such as Arizona, Massachusetts and Georgia where the fees range from $6 to $25.

Banks stand by their move stating that they are not charitable organizations. They say that they are being forced to levy new charges or increase the existing ones because the Federal Reserve has imposed many restrictions which have curbed their revenue. Though many consumers oppose these fee structure changes, a number of consumer advocate groups stand by the banks (as long as the changes are nominal) considering their predicament.