Bank of America Adding Annual Fee to Some Credit Cards

Feb

Bank of America Adding Annual Fee to Some Credit Cards

Tagged Under : Annual Fee, Cards, Credit Cards

In a bid to mitigate risk, Bank of America is adding a $59 annual fee to select credit cards, according to ABC News.

The Charlotte-based bank began sending notices out to card holders last week, and will assess the annual fee on May credit card statements.

The change doesn’t affect a specific credit card issued by the bank, but rather a specific type of card holder.

Those with lower-than-average Fico scores and those who often make late payments are being targeted.

Additionally, many of those subject to the fee don’t have any other relationship with Bank of America, such as a checking and/or savings account.

Bank of America said the average customer being assessed the annual fee has an interest rate of 14%, and noted that such customers wouldn’t qualify for such a credit card today.

This looks to be a loophole around the new credit card rules, which prohibit interest rate hikes in the first year an account is opened, or on existing balances.

We were all warned that the credit card companies would come up with some way to fund the shortfall tied to the new rules, and this appears to be one way.

A company spokesperson said roughly 5% of the bank’s credit card customers would be affected.

This news makes it all the more clear that having a good credit score is even more important going forward.

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