Big Bank Epiphany: Adding New Fees May Be Bad For Business

Could 2013 be when big bank customers finally get some relief from the onslaught of fees they’ve weathered in recent years? According to some bank industry analysts, the answer is a qualified yes. Fees aren’t going away entirely, and the experts say penalty fees in particular will continue to creep higher, but a new regulatory climate in Washington has put banks on notice that piling on costs is not the best way to do business. “The whole landscape changed after the election,” says Ken Thomas, an independent bank consultant and economist. With Obama in the White House and celebrated Wall Street watchdog Elizabeth Warren in the Senate and likely within reach of a seat on the Senate Banking Committee, “regulators feel emboldened. They feel a new sense of purpose,” he says. “Banks want to do what they can to minimize complaints. They’re being a little more consumer sensitive than they were before.” After last year’s debit card fee debacle, in which Bank of America had to ...

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