Bankers are sure trotting out the appealing straight talk to defend the recent increase in rates on various consumer banking services. First it was Bank of America CEO Brian Moynihan telling folks that adding a $5 monthly fee for debit cards was okay because they “have the right to make a profit.” Now an American Bankers Association has an interesting turn of phrase to defend the jackup in checking account costs, most recently done by Citibank.
“We don’t expect to pay nothing to ride the train,” Nessa Feddis, vice president and senior counsel of the American Bankers Association told CNN Money. “It’s the same thing with a checking account.”
Citibank had announced that it was adding or increasing monthly fees across its checking account options if minimum balance amounts weren’t met. In some cases, those minimum levels have been increased as well.
Sure, no one expects to ride the train without paying. But no one expects to be handed a no-cost train pass and then, after the railroad gets get bailed out by their town for speculating in esoteric and low-quality trains painted with gold-leaf paint (too big to rail?), the travelers start getting charged a fee what was advertised as a “free for life” ticket.
Citi hikes fees on checking accounts [CNN Money] (Thanks to Dan!)