Bank Of America To Charge Fee To Some For Making Mortgage Payment Within Grace Period

Bank of America is making an 11th-hour push for inclusion in the upcoming Worst Company In America tournament. Starting in February, folks with BofA mortgages who don’t have BofA bank accounts will see their current 15-day grace period for making payments cut by 40%.

From MSNBC’s Red Tape blog:

Consumers who use the bank’s online payment tool, Mortgage Pay, will risk a $6 fee if they fund payments using another bank’s checking account and the payment falls during the final six days of the traditional 15-day grace period. Consumers who make payments from Bank of America accounts are not subject to the fee.

So… it’s not really a grace period anymore for those people, is it?

Gail Hillebrand from Consumers Union (the proud parent of Consumerist) had this to say:

Let me get this straight. They tell you that you have a grace period, (then) they say, ‘Oops, you only have half of it if you don’t bank with us,’… That doesn’t seem fair. … This looks like a new ‘gotcha,’ and we have enough of those already.

Many of the people with BofA mortgages don’t have an existing checking account with the bank because they didn’t get their mortgage from BofA to begin with.

“You don’t want to have to go around changing your checking account every time someone buys your mortgage,” said Hillebrand, who says the way to avoid this problem is to make your payment before the grace period even kicks in. “This is just one more way to extract money out of you that you don’t expect to have to pay.”

B of A redefines ‘grace period’ with new fee [MSNBC]

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  1. tbax929 says:

    “Many of the people with BofA mortgages don’t have an existing checking account with the bank because they didn’t get their mortgage from BofA to begin with.”

    Thanks for pointing this out. It seems every time an article about B of A mortgages is posted we have commenters blaming people for having mortages with them in the first place. My mortgage was sold a week after I closed on my house.

    I had a B of A checking account that I only used for cash deposits (I do my other banking with USAA) and immediately closed it after they bought my mortgage. I do not think it’s a good idea to bank with the company you have your mortgage with.

    • cvt2010 says:

      I’m in the same boat! Looking back on it, I wish I’d gotten my mortgage through someone who would hang onto it instead of selling it immediately, but our mortgage broker was local and really patient with us being first-time homebuyers, and he had worked with our realtor a lot, so it made things easier.

      Thankfully I auto-pay my B of A mortgage through USAA on the day its due every month, so I don’t have to worry about this. I love paying it through USAA since I hate B of A’s website with a passion. Though, every two months or so, they send us a concerned email because we haven’t logged into the website in too long. No, B of A, I didn’t lose my login info, I just hate your site.

      • tbax929 says:

        Is there any way to ensure that you’re dealing with a company that won’t sell your mortgage? It’s my understanding that most mortgages do get sold, and sold rather quickly at that.

        • Chmeeee says:

          If you start off with big bank hell, then you probably know you’re going to at least stay with them. Mine was through Chase from the beginning, and I don’t think they sell mortgages to other banks.

        • myCatCracksMeUp says:

          My credit union , Navy Federal, has never sold a mortgage. They don’t promise that it’ll never, ever happen, but in the last 30 or so years they never have. We’ve had our mortgage through them for many, many years.

          Unfortunately they can’t go from signed contract to closing in less than 60 days, even if you’re pre-approved, and now that we’re buying a second home, we’re going through a mortgage broker, so I don’t even know yet exactly who will have the mortgage, now or later.

          • tbax929 says:

            I’ve heard great things about Navy Federal. I’ll certainly consider them if I buy another house – which won’t be anytime soon. Thanks for the tip.

          • Nidoking says:

            “Unfortunately they can’t go from signed contract to closing in less than 60 days”

            Really? I went from house-hunting to closing in less than a month, including both the pre-approval and the actual loan.

        • selkie says:

          I’m pretty sure that lenders are supposed to disclose to borrowers what percentage of their loans they sell and what percentage they keep. I remember a document from our local credit union saying that they hold 99% of the loans they write when we were closing on our loan.

        • Necoras says:

          Planet Money (NPR) had a podcast recently about why mortgages get sold so quickly. Worth listening to.

        • MaxH42 thinks RecordStoreToughGuy got a raw deal says:

          I’m surprised you asked….USAA doesn’t sell their mortgages. I got a good rate with them, but I would have gone at least half a point higher, probably more, just to stay with USAA and head off headaches like this.

          • tbax929 says:

            I could have gone with USAA, but I got a better rate by using my builder’s bank. They bought down a point of interest for me, which I was then able to deduct on my taxes.

        • webweazel says:

          I know what you mean. I hated to get our old mortgage sold around, even though it only happened once on our last house. Even though we had nothing to do with it, it always made us feel unwanted or something.
          When we were shopping for a new mortgage, we looked into a few different companies. Wells Fargo was one of them. At some point, they said they do not sell mortgages initiated with them. This moved them to the head of the pack. We signed through them, and 4 years later, knock on wood, we are still with them.

    • dangerp says:

      Exactly.

      I got my mortgage through a local credit union because I wanted to keep my money local and I despised BofA and WaMu. My mortgage was transferred to BofA before I even left the signing table, and I had no choice in the matter.

      I quit my BofA checking account a very long time ago, and I was certain that they wouldn’t get another penny of mine. It hurts to send in that mortgage payment every month.

      At least I pay my mortgage through my instamagic bill pay, so I won’t have to worry about the non-grace period fee.

    • Loias supports harsher punishments against corporations says:

      This. I am generally very afraid my mortgage will be foreclosed on erroneously or my home to be ransacked and there’s really nothing I can do.

      I closed with a broker and they sell 100% of their mortgage to other clients. I was forced into BoA, not by choice.

    • aen says:

      I’m also in this boat. My mortgage was sold 2 or 3 times before it ended up in BOA’s hands. I really wish I would get a cut of the sale, you know what I mean? I’m paying the darn thing.

    • Kate says:

      Yeah, so much for that libertarian fantasy that the way we keep businesses honest and providing good services is to just not do business with them.

      • hansolo247 says:

        If this administration didn’t have such a woody for big banks, we wouldn’t have even had to make that choice.

        Yes, the last administration did, too.

        When they found out they bought a turd with CountryWide and Merril, we should have just let them sink and sell their assets to someone more competent.

    • donssword says:

      My Quicken mortgage was sold to Country Wide, who sold it to BOA.

      Every time I make a payment to BOA, I always question “if I refinanced with another bank just to get away from BOA, how can I keep my mortgage from being sold to BOA?”

      I’ll never open a checking or savings account with them.

  2. danmac says:

    Bank of America: The Ryan Air of the financial community…minus the cheap airfare.

  3. Loias supports harsher punishments against corporations says:

    I have a BoA mortgage.

    The current state of things is really not any better. From the BoA website after login (formatted slightly for ease of viewing):

    New fee structure for Mortgage Pay on the Web and external bank accounts

    In an effort to streamline our Mortgage Pay on the Web service, we’re changing the fee structure for customers who make mortgage payments with external bank accounts (non-Bank of America).

    Currently, customers using external bank accounts to pay their mortgage via Mortgage Pay on the Web are not charged a fee for the first third of their grace period. There is a $3 fee if the payment is made during the middle third of the grace period and a $6 fee is assessed if the payment is made during the final third of the grace period.

    Beginning February 14, 2011, customers scheduling their mortgage payment using external bank accounts via Mortgage Pay on the Web will not be charged a fee for payments made within the first half of the loan’s grace period. A $6 fee will be assessed for the second half of the loan’s grace period. When you sign in on or after February 14, 2011, you will be required to accept these changes to the terms and conditions before you can make your payment. You will be required to do this only once.

    Please note, any payments made with a Bank of America checking or savings account will not be charged fees throughout the grace period. However, late fees may still apply if the payment is not made within the grace period.

    Mortgage Pay on the Web fee changes when using external accounts

    Current fees
    $0 – First third of grace period
    $3 – Middle third of grace period
    $6 – Final third of grace period

    Fees as of February 14, 2011
    $0 – First half of grace period
    $6 – Second half of grace period

    • Loias supports harsher punishments against corporations says:

      Long story short, if you pay at the beginning or end of the grace period, no change.

      If you pay in the middle of the grace period, you either save $3, or lose $3 more.

      • c!tizen says:

        short story even shorter…

        “Dear (probably forced) customer, F*%k you.”

      • Plasmafox says:

        You’re missing something. If you have a bank account with BoA and also a mortgage with them, they can take money directly from your bank account and pay it on your mortgage without asking. Legally this has to be done “with permission” but it’s not possible to open an account with most banks without signing something agreeing to this. They’re figuring that people will open a bank account to avoid the nonsense fee, but the account will have nonsense fees of its own, and if you’re late on a mortgage payment, they help themselves to their savings.

    • rugman11 says:

      In other words:

      Old way – pay up to 5 days late without incurring fees

      New way – pay up to 10 days late without incurring fees

      And how, exactly, is this bad?

      • Mom says:

        Back in the sands of time, when people actually earned interest on money they had deposited, a common tactic to eke out the last bit of interest was to pay the mortgage right before the end of the grace period. All mortgages that I’ve seen have the grace period, and there isn’t really any penalty for paying during the grace period, making the effective due date for the payments the 15th of the month, rather than the 1st. What BofA is doing now is changing the terms of the loan, by making the due date for the payments several days earlier.

        I don’t see how this could be legal, since the grace period was written into the loan contract of my BofA loan, but I leave that to people with more time on their hands to sort out. I pay my mortgage from the BofA checking account that came for free as a result of having a mortgage there. Six days before the end of the grace period, I transfer exactly enough money into the account to make the mortgage payment. Three days before the end of the grace period, I make the mortgage payment. It’s all automated. The rest of the month, I have about $50 in the account.

  4. oBry3n says:

    Doesn’t seem fair at all since you can’t control who owns your mortgage.

  5. ToKeN2k6 says:

    Wow, man this really sucks!! I had a Countrywide mortgage that I guess B-o-A assumed. For 5 years I always scheduled my payment on the 15th of every month (sometimes it was necessary, sometimes not) just because I could, and as kind of like a ‘screw you’ to the company(-ies) Guess the joke ends up being on me! Now, I am renting my house w/ the B-o-A loan and getting a new one with Ryland. I sure hope the renters pay on time! Jesus..

  6. YokoOhNo says:

    don’t like it? start your own bank and/or mortgage finance company…or pay cash for your home…or rent.

    why does everybody hate America and the current incarnation of a “free market”?!?!?

    has anybody thought of the shareholders? WHO WILL PROTECT THE SHAREHOLDERS?!?!?!?

  7. SBinVA says:

    It applies to those that use *Their* mortgage pay system. Use your bank’s online bill pay and just make sure it arrives before the 15th.

    • winnabago says:

      +1 Why would I let them pull money from checking automatically using some proprietary online system and EFT? I would use my checking account bill pay and not worry about any of this crap.

      • tbax929 says:

        I have my auto loan and auto insurance with USAA, where I bank, and I have no problem with USAA automatically withdrawing for those payments. However, that’s USAA, a bank I actually trust. No way in hell I’d let B of A get its hand on my checking account after all the horror stories I’ve read about them! It’s bad enough I have my mortgage with them (not by choice).

        • Darkneuro says:

          Silly question, but have you checked with USAA about having them re-fi your mortgage? They won’t sell it if they get it, I know that.

  8. ShruggingGalt says:

    So let me get this straight.

    Your mortgage is due by Date A.

    They will charge fees if not there by Date B, aka the grace period.

    BofA want to change the grace period for non BofA account holders? Unless the grace period is in the mortgage docs, the payment is due by Date A, so what is the problem?

    • wrjohnston91283 says:

      I was wondering the same thing – its not a revolving line of credit, its a fixed loan, why is there a grace period?

    • c!tizen says:

      Here is where I see a problem:

      I didn’t get a loan from BoA. I entered a contract with another lender with a stipulation that says due to what may be unforeseen circumstances I have the ability to make mortgage payments x amount of days past the official due date without incurring any type of penalty. BoA had nothing to do with that, but when they bought the mortgage they bought the contract “as is” and now want to put a stipulation on a condition of that contract because I don’t have, nor do I want a financial relationship with BoA. They’re trying to make money by side stepping a contractual agreement in which they had no input into when the contract was made.

      Lucky for me I have a “mortgage sale clause” on my mortgage that says the buyer of the mortgage can’t change the terms through arbitration without my express consent (requiring my signature, not lack of signature). If I used the BoA site to pay my account and I was hit with a fee I could reclaim that (admittedly small) fee without much of a hassle. My broker rocks!

    • skylar.sutton says:

      +1 for being the only sane comment on here.

      You missed the due date folks, be happy they’re accepting your payment at all instead of filing paperwork with the courts.

      Why do fellow mortgage holders have such an entitled attitude lately?

      • psm321 says:

        except that the grace period IS in the loan docs, and is a common enough thing that my last servicer would automatically pull the payment 7 days into the grace period, with no option for me to change the date to an earlier one. interesting side note: according to the mortgage docs, you are technically in default if you pay during the grace period (pointed that out to my last servicer), but i’ve never heard of any banks actually doing anything with that

  9. nybiker says:

    What the change applies to is the Bank of America online mortgage pay tool. The fee to use that tool is either $0, $3, or $6 depending on when you pay the mortgage. With the new structure the fee is going to be either $0 or $6. The grace period is still 15 days, so there’s no late charge. If you use your own bank’s bill pay system (or you mail a physical check / money order / gold bar) so that Bank of America gets the payment on or before the 15th then there is no late fee.

  10. anime_runs_my_life says:

    Uh..that’s a processing fee, not a late fee. Big difference.

    The late fee is usually 5% of the payment amount. If people want to avoid paying the fee can schedule it with their own bank or go into a branch.

    • ParingKnife ("That's a kniwfe.") says:

      Yeah. Big difference.

      If you believe that it costs the bank money to “process” a payment based on the day it comes in, come on over sometime, I have a bridge I want to sell you. Of course, you’ll have to pay me a coming over fee of $400 and a pitch fee of $30

      • hansolo247 says:

        The extra delay in having the payment come from a non-BOA account does cost them money.

        Delayed cash flow has a monetary cost.

        After all, the payment is already late. Unless the actual signed mortgage agreement says one can pay 15 days late with no penalty, BOA is in the right (it pains me to say that).

        The grace period is probably just a courtesy, not a contractual requirement.

  11. rugman11 says:

    Wait, so for years Bank of America has allowed people to pay their mortgages up to two weeks late without any penalty and now they’re charging a penalty to some people who pay their mortgage a week late and they’re the bad guy?

    Seems to like these people should be thanking BoA for letting them pay their mortgage late. I know I can’t pay my rent late.

    • johnva says:

      Our landlord actually has a 5 day grace period that works the same way. They even directly said to us “the bill says it’s due the 1st, but the 5th is the real due date”.

      • psm321 says:

        reminds me of my township’s tax bill, which is technically due the day the send the bills out (seriously), but is actually due like 3 months later

    • ParingKnife ("That's a kniwfe.") says:

      You do not understand grace periods. Especially in insurance, but sometimes in other contexts, they have a distinct legal meaning. Which means this may be challenged in court.

      • rugman11 says:

        But the grace period isn’t changing. Obviously, if BoA had a contract with a mortgage holder specifying a certain grace period, and then tried to unilaterally change that contract, they would have issues. But BoA isn’t changing the grace period, they’re changing the fee structure for processing a payment during that grace period. And from what I understand, most of the people effected by this change will actually benefit (that is anybody who paid between 6-9 days late used to have a penalty, now they have none). I don’t see how this can reasonably be challenged since the mortgage contracts are unlikely to specify the processing fees.

        • ParingKnife ("That's a kniwfe.") says:

          Because the fee is obviously contrived and the legal definition of grace period is that there is no penalty.

          • MaxH42 thinks RecordStoreToughGuy got a raw deal says:

            But it’s not a penalty, it’s a “revenue enhancement fee”! BoA told me so!

    • Mom says:

      Well, since the 15 day grace period is written into the fee schedule of my loan, I don’t think I’ll be “thanking” them for letting me pay my mortgage “late”, I’ll be paying my mortgage according to the terms of my agreement, somewhere around the 12th or 13th of the month.

    • squablow says:

      Actually, everybody pays the $6 right now if you’re at the end of the grace period, but now they’re waiving the fee if you have a bank account with them. They will actually be collecting less of the $6 fees from now on, in an effort for people to sign up for one of their bank accounts.

      This is not a new fee, it’s actually a discount for checking account holders.

  12. PunditGuy says:

    IBM LBPS “customer” here. I get 5 days to get my Web payment in before getting hit with a $5 fee. It’s not like my mortgage is one of those expenses I’m going to forget about, so it’s never been an issue.

  13. majic2516 says:

    “Bank of America is making an 11th-hour push for inclusion in the upcoming Worst Company In America tournament.”

    I thought BOA gets an automatic bid.

  14. paulthegeek says:

    Our mortgage was bought and sold three times before ending up with BofA. I do no other banking with them and probably never will. Their online “Mortgage Pay” system doesn’t allow you to schedule more than one payment in advance. Basically you can’t set up a regular, automatic payment on the 1st of every month, as I would prefer to do. One must log in to the site every month and schedule a payment. It sucks.

    We always pay the mortgage on time, so this grace period fee thing isn’t really an issue for us. But I’ll admit we were never quite comfortable with BofA as our mortgage-owner (or whatever). Shenanigans like these make us less so.

    • Loias supports harsher punishments against corporations says:

      This has changed. You should be able to set up reoccuring payments.

  15. Cosmo_Kramer says:

    Really? Even a 9 day grace period on a mortgage sounds pretty generous. I think mine only has a 5 day grace period. Hard to remember though, because I always pay before the first of the month.

    • Mom says:

      You have a very unusual loan if you only have a 5 day grace period. I’ve had lots of mortgages with lots of different companies, but one of the commonalities is that every one of them had a 15 day grace period.

    • hansolo247 says:

      One should always pay their bills as close to the due date as possible, but not after.

      If you pay early, you’re leaving money on the table. I make it a habit to schedule payments to hit 0-1 days before they are due.

      Only Chase has had the gall to try to charge a late fee. I told them that if the money is in their account by the due date and they’re just waiting on their lackeys to apply that, that’s not late. They waived the fee each time. I stopped doing business with them BECAUSE I had to call, though.

  16. SiddhimaAmythaon says:

    interesting i can’t believe this is legal. I got my mortgage with WaMu a few years back (my employer had a deal so it saved me almost 1.5% on interest) When i signed it i had the option get the pay book (and a $5 a month fee) or direct debit from any bank (this is what i did). I use a internet bank due to better service. My loan is now with Chase and they just took over the direct depot no paperwork needed. GOD i hope they don’t sell my loan to BoA.

  17. Johnmcboston says:

    No surprise here. This is the same bank that takes 2 days to make an electronic payment – something that should take 5 seconds to occur…

  18. larrycl says:

    Is the grace period in the mortgage docs? If so, how can they change it after the fact?

    • Loias supports harsher punishments against corporations says:

      The lentgh of the grace period is not changing, only the fees for an ETF.

  19. PLATTWORX says:

    Um, I pay my mortgage before the due date… like you are supposed to. When a bill says ‘Due by December 15th” you pay it before or on December 15th. Hense, no grace period to even think about.

    • dolemite says:

      That’s the way I am. And I usually pay it 1-2 weeks before that date even, just in case something takes awhile to process or gets delayed somehow.

    • MrEvil says:

      The only bill I pay after the due date is my electric bill and that’s only because the City of Austin has my due-date set as the 27th. After chatting with their customer service first they have no problems with me paying on the last day of the month.

  20. balthisar says:

    People, for the love of God. Grace period != Due date. If you pay during the grace period, you’re paying late. It’s kindness and decency in the first place that leads banks and other companies to offer grace periods in the first place.

    • EverCynicalTHX says:

      No, it’s not kindness or decency that makes grace periods a standard business practice, it’s the fact that people will take their business elsewhere if a company tries to impose late charges with no grace period.

  21. Draw2much says:

    Oh yeah, I’ve been getting messages about this almost every time I login to BoA lately. It’s not much concern to me, since I pay of my mortgage long before the due date.

    And I am one of those people who got their mortgage sold off to BoA. =n=

  22. evilpete says:

    I had BofA charge me a late fee once when I deposited the money for my mortgage into my checking account the day it was due..

    they withdrew he money then charged me a late fee.

  23. EverCynicalTHX says:

    Citimortgage has a 15 day grace period before you get a late fee.

    However, if you pay online only after the 9th there is a $10 processing fee. Sounds like BOA has a much better deal than Citimortgage.

  24. tubedogg says:

    Legal arguments aside, I’m having a really hard time mustering up any sympathy for the people who are honestly complaining about the imposition of a fee when you are PAYING YOUR BILL LATE. Whether it’s an industry standard to allow 15 days or not, whether “grace period” has a legal definition or not, the bottom line is you are PAYING LATE. I have absolutely no sympathy. The fact that the banks have allowed a fee-free period in which you can PAY LATE before having additional fees imposed is something of a miracle in this day and age. I wouldn’t push too hard on it, it might start disappearing.

    • EverCynicalTHX says:

      Grace periods are standard practice for every businesses. If you receive a medical bill isn’t there usually a 15-30 day grace period? How about your cable bill..your power bill..your phone bill..etc.

      Give us a list of mortgage companies that charge a late fee after the 1st.

      • rugman11 says:

        False equivalence. All of those bills you name are invoices printed after services are rendered. A mortgage is a payment on a loan. I don’t expect my student loan servicer to provide me with a free grace period. Why should a mortgage provider do the same?

  25. u1itn0w2day says:

    Uh, isn’t that like an extortion or a protection racket pushing a customer to use the same company’s checking account to pay their mortgage.

    Using another bank’s checking account a 6$ fee? FU

  26. gman863 says:

    This sounds like a cleverly worded scam on BoA’s part.

    The key is that customers are charged the fees if they use BoA’s “Mortgage Pay” website to make the payment.

    Under the terms of my mortgage (which was also purchased by BoA as soon as the ink dried on it), the payment is DUE on the first; however the LATE FEE will not be added until the 15th. I suspect BoA is legally locked into this; most traditional fixed-rate mortgages don’t have credit card clause-type traps stating “We can bend you over and break it off by raising your interest rate or fees anytime we feel like it” (As we speak, I suspect thousands of lawyers who specialize in class-action are masteurbating as they fantasize about BoA making an illegal attempt at doing this).

    Avoiding this fee is a no-brainer: Schedule and/or pay your mortgage on-line USING YOUR OWN ONLINE BANKING. Since it’s done via electronic funds transfer, BoA receives the money the same day your bank sends it. My bank (BBVA Compass) even guarantees that, if a scheduled payment is late due to their error, they will contact the lender and pay any late fees.

    Read both the fine print and between the lines: This fee will only affect those who are stupid enough to do online payments through BoA instead of their own bank.

  27. dirtrat says:

    Thank god I just did a refi and got away from BOA. Clearly they are the worst company in America!

  28. Invader Zim says:

    Wow bofa wins the
    “blood sucking company of the year award”. Does the robbing ever end?

  29. rambo76098 says:

    Another reason to avoid BOA. Why have they gotten this big with such awful rules & policies? I’d never use them…

  30. dancer99 says:

    People–The fee is going down. Currently: People that pay one certain way (1 of about 5 different ways to pay–the other 4 are completely free) are being charged either $0, or $3, or $6. Going forward: people who pay that one certain way will be charged either $0 or $6, and they will have 3 extra days to pay and still be charged $0 instead of $3. The $3 tier was removed and the $0 tier was expanded.

    The grace period to avoid late charges is still there. They cannot legally change that.

  31. Cyfun says:

    When I bought my house a year ago, I was tired of dealing with the corporateness of Wells Fargo, so I decided it’d be nice to support a local business and got my home loan through a local credit union, as well as transferred my checking account to them. However, as it turned out, they don’t keep home loans, but sell them. Aaaaand of course they sold it to BofA, whom I utterly despise. I was pretty miffed when this happened, but my only course of action would be to refinance through another bank, and that would cost thousands. If they try to pull this shit on me, I’ll tell my lovely local credit union that they get to cover the fee since they’re the fucktards who sold me out.

  32. lukesdad says:

    Citibank does this too. The grace period is through the 15th, but if you pay after the 8th they tack on an additional $10. I never liked it per se, but it’s reasonable considering it is a grace period, not the earlier due date of the 1st.

  33. damageddude says:

    I discovered Citi Bank, who purchased my mortgage from a company that purchased it from who I actually borrowed the money from (I think, there may have been another company), already does this, though its only in the last few days of the grace period. I just moved the payment a few days earlier and the fee disappeared.

  34. CrazyEyed says:

    The grace period is part of the mortgage documents therefore can never be changed or reduced.

    The Bank can charge whatever fee it wants (even if it its unethical for business) if you are using their website (their service) to make a payment.

    This is the same with utility companies. Their rationale is that if you use their website or their service to make a payment they can charge a service or transaction fee because they didn’t have to make it convenient for you to pay via electronic means or pay by phone. However if you mail a payment you are incurring the cost to mail it.

    What I don’t get is that it still costs them money to physically process your check by mail and all the handling involved which could cost more than a mere electronic transaction.

    Anyway they can, corporations will nickle and dime you.