Big Surprise for Democrats - Corporations Pass Regulatory Costs On to Their Customers

When the Dodd-Frank banking regulation bill was passed the Democrats just assumed the banks would eat the new costs the bill imposed.  Guess what?

Bank of America customers with basic checking accounts will be hit with a $5 monthly fee in order to use a debit card for purchases, the bank announced Thursday.

Banks and card companies have been aggressively establishing and raising fees in recent weeks as banks plan for new rules taking effect Saturday that limit the amount they can charge retailers for each debit card purchase.

JPMorgan Chase and Wells Fargo are testing $3 fees for debit cards in select areas, and Citibank recently announced it is raising its fees for checking accounts. Janney Montgomery Scott analyst Thomas McCrohan said last week that Visa and MasterCard, the top two debit card companies, may increase drastically increase fees on small purchases to offset the losses.

SunTrust, a regional bank based in Atlanta, began charging a $5 debit card fee on its basic checking accounts this summer. Regions Financial, which is based in Birmingham, Ala., notified customers this summer that it will charge a $4 monthly fee starting next month.

I bank at a credit union and my guess is they won't join the chorus of big banks adding new fees. My guess is that after people start getting hit with these new fees, they'll start shopping around and some banks that are already in trouble will really take a hit.