Following yesterday’s news that Bank of America is testing new checking account fees in Massachusetts, that state’s Secretary of State has said it may be time to pull out the millions of government money currently stashed in the BofA coffers.
“They are penalizing people for putting money in their bank which they can then utilize to invest in anyway they want,” says Secretary of State William F. Galvin, who is pushing for legislation that would forbid Massachusetts state and local government offices from keeping deposits at a bank that doesn’t offer free checking accounts.
Back in the ’80s, Galvin successfully co-sponsored legislation that required banks state-chartered banks to offer such accounts, but that law was written before the dominance of megabanks like BofA, Chase and Citi.
Galvin says that while the current BofA fee test may be just “a trial balloon… I think it’s important we take out the anti-aircraft artillery and shoot it down.”
The new fees are also being tested in Arizona and Georgia.