October 4, 2011
Today, U.S. Rep. Brad Miller (D-NC) introduced The Freedom and Mobility in Banking Act aimed at giving consumers a choice by modernizing and streamlining the opening and closing of personal checking and savings accounts. The bill is in response to major banks announcing that they will increase fees for consumers because of recent reforms that will affect their enormous profits.
“As megabanks flirt with menus of new fees, an increasing number of Americans will want to switch banks,” Rep. Miller said. “That is the way things work in a competitive, free market as unrepentant banks are still trying to rake in vulgar profits from their customers.”
Recently, HSBC North America has told customers that it is eliminating their free checking accounts which will now carry a monthly maintenance fee of up to $15. Wells Fargo, one of the four largest consumer banks in the U.S., has also eliminated free checking. Most recently, Bank of America, one of the largest recipients of U.S. taxpayer bailouts, announced it would charge customers a new $5 monthly fee for using their debit cards – even if it’s for a single $2 purchase. B of A was already testing new “tiered” checking accounts that will encourage customers to increase their activity with the bank.
“Because of financial reforms, banks are unable to rely on the cash flow of practices like double-cycle credit card billing, compulsory overdraft programs, or unregulated debit swipe fees,” Rep. Miller said. “Bank executives are coming up with some innovative ways to protect their offensively large salaries.”
Unfortunately, consumers who might benefit from opening a new bank account or closing an old one are currently often dissuaded from doing so because of the considerable inconvenience it can entail. (continued)
*** See attched bill: Freedom_and_Mobility_in_Consumer_Banking_Act_FINAL_July_27_2010_xml.pdf
***The following consumer, civil rights, labor and industry groups support The Freedom and Mobility in Consumer Banking Act: Americans for Financial Reform, AFL-CIO, SEIU, NAACP, Consumer Federation of America, The Leadership Conference on Civil and Human Rights, Retail Industry Leaders Association
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