Bank of America is the largest retail bank in the United States. It is feeling more pressure than perhaps other banks to find new ways to generate this lost revenue from the new federal regulations. As stated in an article  published on www.ft.com, “at a recent investor conference, Brian Moynihan, chief executive, said ‘Over the next 12 months, we will reset the entire product line’.”

In the past, banks made up to half of their profits on current accounts by charging overdraft fees. This will no longer be true. Banks may still charge overdraft fees, with their customer’s consent. However, Bank of America is striving to be customer friendly and has waived those fees completely, giving up an estimated $1 billion in annual revenue.

According to the Financial Times, Bank of America intends to try out a new tiered pricing system. This effort will hopefully create more revenue from their customer’s accounts.

This new structure plans on having Bank of America reward their best customers for maintaining a certain minimum current account balance, using their credit cards a specified number of times each month, or conducting all of their banking electronically. Their customers that do not meet their requirements will be charged more for their accounts. Bank of America believes that this will boost their revenues without charging possible controversial “across the board” fee raises.

Bank of America essentially wants to “unbundle” their pricing, much like cellular companies and the airline industry have done recently. They will be testing these newly priced packages in a handful of markets by the end of this year.

In August, they started these by waiving all maintenance fees for their customers that elected to do their banking online. Their customers who wanted paper statements have to now pay $8.95 per month. Since Bank of America launched this program, about forty percent of their new current accounts have elected to receive their statements electronically and conduct their banking online. However, more have decided to bank the traditional way and have agreed to pay the fee to receive a paper statement each month.

As stated in the Financial Times, “We’re not guaranteeing that we will recover all of the revenue lost as a result of the new regulations, but over several years we think we’ll get back a good share,” said Joe Price, who runs Bank of America’s consumer bank.

Bank of America (NYSE: BAC) to try new pricing structure to offset lost revenue was created by and is property of American Consumer News.

Many in the news industry are holding their breath for good results. The New York Times Company has stated the new pay system would not affect the millions of occasional visitors to the website but would allow the company to cash in on the loyal visitors. The actual fundamentals of the plan have not been developed in full yet, including how much it would cost for the flat-rate fee. For many years, publishers have relied on support of digital advertising to support their online presence but since advertising is dramatically decreasing in the last two years, publishers are hoping to recoup more money from their regular readers than they would end up losing from advertisers.

NYTimes.com is the most popular newspaper website in the nation claiming more than 17 million readers a month just in the US according to the latest Nielsen poll. In addition to its fame, NYTimes.com is also a leader in revenue from advertising income. This fact means the company has more to lose if the move doesn’t work. “We can’t get this halfway right or three-quarters of the way right. We have to get this really, really right.”
Times Company chairman and publisher of the newspaper Arthur Sulzberger Jr. said in an interview.

Any site visitor will continue to have full access of the home page and be able to read individual articles through search engines including Google, Yahoo and Bing for free. Subsequent article clicks will be tracked toward the monthly limit. The Wall Street Journal and Newsday also charge for access to major sections of their Web sites as well as smaller outfit including The Financial Times, The Arkansas Democrat-Gazette and The Albuquerque Journal currently. Many more online newspaper sites are expected to join in the process in 2010 and beyond.

Readers who have already sent in emails to the newspaper stating they would support the new fee-based browsing were already outnumbered by those consumers refusing to pay for visitation.

NYTimes.com to Charge Loyal Readers in 2011 was created by and is property of American Consumer News.

Overdrafts and Fees
Banks are used to charging overdraft fees (also called Non-Sufficient Funds – NSF fees), they have been doing it for years.  But what is particularly bothersome about this is that the overdraft fees are very expensive.  In fact, they usually top $30.00.  Then, in addition to that retailers add on their own fees which can be as much as $25.00.  Also, a common practice is to try to re-submit the charge again by the retailer.  That results in another fee.  You can have charges of around $100 real quick in this scenario.

Also, banks have begun to offer automatic overdraft protection.  But what this does is prevents them from just rejecting the transaction, and instead allowing it so that they can charge the fees.

Lining Bank’s Coffers
This practice by banks has them raking in more in overdraft fees than they collect on credit card fees.  It has become a big profit center for them and there is nothing that you can do about it.  Most banks will not renegotiate these fees down.  They stand behind their written policies while you drown in a sea of charges that straps you financially.

Security Concerns
Another concern for debit card use is the inherent security risks involved.  This is because debit cards do not have the security protections that credit cards provide.  If you have unauthorized charges on your debit card, then you are out that money unless you can discover who used your card and retrieve the money through legal means.  And the chances of that happening are slim to none.

Consumers are using debit cards more frequently than credit cards these days, so the need to understand the risks and then avoid them is real and necessary.
The federal government is looking at enacting legislation that protects against the usurious nature of the banks practices.  Until then, it is more than likely that you will experience an event such as these on your accounts.  At least knowing the risks should help you be more vigilant with your accounts.

Consumer Debit Card Use Getting Expensive was created by and is property of American Consumer News.

According to a JetBlue news release, effective on August 4, 2008, customers on JetBlue flights longer than two hours may purchase the $7 eco-friendly pillow and blanket, which includes a coupon for $5 off the future purchase of any item at Bed Bath & Beyond. “Replacing our old, recycled pillows and blankets with this state-of-the-art, high-quality take home kit is an eco-conscious, health-conscious and customer-conscious decision,” said Brett Muney, General Manager of Product Development for JetBlue Airways. “We are constantly seeking ways to enhance the in-flight experience for our customers, and providing them the option to purchase The World’s Cleanest travel pillow and a fleece blanket at an affordable price delivers on that promise.”

The airline is trying to spin this move to be one of pro-consumer and eco-conscious choice. JetBlue executives were hammered for nickel and diming customers with this new move on the major talk shows, including Larry King Live, yesterday. In one of the responses delivered, the JetBlue executive stated that by charging fees for items such as blankets, they are allowing travelers to only pay for what they actually want to use. This allows them to keep ticket prices low and not increase ticket prices by $10 to $20 to cover costs for items that its customers may not even use, according to interview statements.

Not to hammer JetBlue, as they are one of the few airlines still offering a few complimentary items including Dunkin’ Donuts coffee, certain beverages, snacks, onboard entertainment by DIRECTV® and even wireless service.

On the “friendly skies” fee front, Delta Airlines has announced its changes to award ticketing pricing and associated fuel surcharges. According to Delta.com, starting August 15th, 2008, for award tickets issued customers face a zero to $150 fee depending on how far out ticket is issued. For travelers who plan ahead, a fee can be avoided if they ensure ticket is issued a minimum of 21 days before departure date. However, the fee is waived for award tickets for Platinum Medallion® members.

Regardless of when Delta fliers book their award tickets, they will not escape fee free. Effective August 15th, 2008, according to Delta.com, “Due to the continued rise in fuel prices, Delta will temporarily add the following fuel surcharge to Award Tickets originating from the US or Canada.” A $25 surcharge will be applied for award travel within the 50 states and Canada compared to a $50 fee for award travel between the 50 states/Canada and all international destinations. “This fuel surcharge will not impact any existing ticketed award itineraries or any future Award Tickets issued prior to August 15, 2008, regardless of the date of travel,” stated on Delta.com.

Additionally, USAirways has impoased a $25 to $50 fee for its frequent fliers cashing in miles for trips and Northwest has announced a $25 to $100 fee for its World Persk ticket. Furthermore, American Airlines is charging a $5 online booking fee and increasing its mile requirements for travelers’ eligibility for “free” tickets.

With all of these new fees being levied this summer, airlines are reporting that millions are being made…but, at whose expense? If you’re looking for cheap tickets overseas, cheap airline tickets to Europe, or cheap tickets to asia, you’re probably out of luck. Even if you get a deal, you’ll get hit with huge fees.

No Free in Flying was created by and is property of American Consumer News.

According to a press release issued by Delta, these new fee increases are in attempt to offset the 70-80 percent increase in jet fuel prices in the last year. These domestic fees are being levied on the everyday traveler. According to Delta, “First Class, BusinessElite and Medallion customers will continue to be able to check up to three bags at no charge.”

With continued rising fees and considering the convenience factor, passengers are turning to shipping companies such as Luggage Free. Pricing is competitive when shipping oversized items domestically including skis and golf clubs for as little as $150 and $115 respectively and these prices include the cost of pick-up. Baggage pricing starts for as little as $1.65 a pound for domestic delivery.

In fact, Jeff Boyd, president of Luggage Free says travelers are continuing to see the benefits of shipping items ahead and the company is projecting a 45% growth in business for 2008. Boyd believes customers are turning to Luggage Free for “The pure convenience of it, which I believe is magnified a great deal by the airlines continued struggles with unfavorable incidents pertaining to their passenger’s luggage.”

Avoiding the hassle of checking luggage in prior to a trip and standing at the baggage carousel watching the bags go round and round are other reasons customers are electing to ship items separately, according to Boyd. While summer is the busiest time for the company, Boyd says “the rest of the year is starting to pick up”.

For Luggage Free, top destinations travelers are shipping their bags to include New York domestically and Italy internationally. For people traveling to international destinations, by opting to ship ahead, they also realize the benefit of avoiding having to clear luggage via Customs.

“We prepare all customs documentation on behalf of our customers,” Boyd says. “As a result, our customers need to only provide us a few small pieces of information, such as a copy of their passport, and we take care of the rest.”

Rising Baggage Fees, Consider Shipping Ahead was created by and is property of American Consumer News.

So what do you do when you are hit with such fees? Here are some tips to help you deal with fees the right way.

• Approach the company representative in a calm, collected manner. It is a good time to remember grandma’s old cliché “You get more bees with honey than vinegar”. Being respectful when approaching the company make allow you to explain your side of the situation and actually be heard. Express your dissatisfaction with the fee and give the representative a chance to work with you. Oftentimes, customer service agents are able to use their discretion to remove fees. If you go in on the attack, chances are you will get nowhere fast.
• If you can’t get anywhere with the associate, ask politely for a manager for additional assistance. If you get transferred, be just as respectful when explaining your side of the story. Do not scream and demean anyone. If you get your message through, ask for a written confirmation of the conversation and be gracious with your thanks.
• If you find you can not get results from the company directly, locate a consumer-advocacy group who can counsel you on the next step. If the situation means enough to you to fight a little bit, you may end up not only helping yourself, but also many other consumers who haven’t used their voice.
• As a final step, you should contemplate filing a complaint with the Federal Trade Commission online at http://www.ftc.gov/ or by phone at 877-FTC-HELP. The FTC can help assist consumers who feel defrauded on some level if the company was not upfront and clear about the fees.
• Finally, consider the amount of time you want to or have invested into the fighting of the fees. If it has taken 30 minutes or more to deal with the situation, you are essentially costing yourself more time and money – Yours!

To Fight or Not to Fight: The Ridiculous Fee was created by and is property of American Consumer News.