Lenders Offset Losses and Bank Fees Rise

 The nation’s biggest banks – they have received big bailouts from taxpayers and they’re once again looking for more. They charge fees at least 20% higher on average compared to smaller lenders. This is according to an economic research firm patronized by federal regulators and banks, called Moebs Services.

Some charges are creative – Wells Fargo, US Bancorp, and JPMorgan Chase – recently began billing small-business customers with federal deposit insurance increases. Meanwhile, PNC Financial and Citigroup assess around 3% international transaction fee when the customers swipe debit cards overseas.

Bank of America introduced a series of changes. Its fees on basic monthly checking account increased from $5.95 to $8.95 in June. In fact, the bank was considering whether they would raise their overdraft charge to $39, which is nearly double of what a typical bank would charge a decade ago. But because of consumer complaints eruption, the bank backed down and retained the initial fee at $35.

Then, there are also credit cards. The banks are scrambling to increase fees and rates – JPMorgan Chase announced that it would raise balance transfer fees to 5% from 3% in August. Bank of America, Citigroup, and other lenders are also considering raising interest rates for their millions of cardholders.