Bank of America has declared war--on America

Bank of America has lost money from a cap on fees that they can charge retailers. Now they're coming after you to make up the difference.

LOS ANGELES, CA (Catholic Online) - They've already taken away free checking and imposed a host of new fees. Starting next year, Bank of America plans to charge debit card users $5 per month for using the card. Consumers complain it feels like Bank of America has declared war on them. 

Other banks are watching carefully as they look to do the same. In fact, Wells Fargo and Chase are already testing debit card fees.

It's hard not to feel like banks are punishing people for the recent government crackdown on banking practices, most notably by capping a variety of bank fees. However, banking apologists  say the banks are simply doing business as they should, doing all they can to earn profits and increase their share price. Debit cards are a service, a service that costs the bank money, so it is fair for banks to charge for that. However, that defense is a tough sell during a recession. 

Bank of America is especially looking to make extra money wherever it can. Despite a massive government bailout (provided by the same taxpayers it plans to charge) at the start of the recession, it is still listed as one of the most troubled banks in the U.S.. Hoping to change that, the banking giant is betting that debit card users don't mind or notice the new fees, or that they will actually agree with them. 

However, at a time when many Americans are feeling the pinch of the recession, the $60 per year fees will certainly be noticed. 

Announcement of the new fees came as new regulations capping card-based transactions come into effect. Until now, banks have charged up to 44 cents per transaction. This has taken a bite out of retailer's profits.

Retailers, who felt they had no negotiating power against the banks appealed to Congress, and Congress capped the fees at 24 cents. That difference is costing the banks billions, and they want to make it up. 

In fact, amongst the myriad new fees that some banks are considering is a fee to charge ATM users who print their balance at the machine. 

Banks openly admit they are pushing back against Congressional regulation of their practices. What remains to be decided is, how much pushing their customers are going to accept.

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