Outrage After Bank Of America Ends Free Checking Accounts

Bank of America said on Monday that it was ending its free checking accounts used by many low-income customers, charging a $12 fee for accounts that doesn't have at least one $250 direct deposit a month or a minimum daily balance of at least $1,500.

Bank of America said the accounts, known as eBanking accounts, ended in 2013 and all remaining customers on the accounts were switched to accounts that charge a monthly fee this month. The bank's move didn't sit well with the public and over 55,000 people have already signed on to a petition demanding that the bank not end its free checking account option.

"Many low income families do not meet these requirements," Mel San, who started the Change.org petition, wrote. "There have been times where I've only had $10 to my name. That wouldn't even cover the maintenance fee."

The Lawyers' Committee for Civil Rights Under Law, an organization that works to advance equal justice through the rule of law, issued a statement Tuesday condemning the bank's decision. The group also cited the petition created to get the bank to reverse the move.

“Poor people who are denied access to traditional bank services are left vulnerable to costly check-cashing outlets, pawnshops and other predatory services," Kristen Clarke. the organization's president and executive director, said in a statement. "Bank of America’s action will result in the expansion of unbanked and underbanked communities across our country. By pushing poor people into the dark world of alternative financial services characterized by higher fees and exorbitant interest rates, low-income communities are at risk of being thrust into further economic distress. This action also has a disproportionate impact on poor African-American and Hispanic consumers who are overrepresented among those who are unbanked and underbanked across the country.

"We urge Bank of America to reverse course and undertake action that will provide low-income communities greater access to low-cost mainstream banking services.”

Several people, including lawmakers, expressed their displeasure through Twitter.

"Cruel. After receiving a massive tax cut, Bank of America is targeting its poorest customers with fee increases. #GOPTaxScam" U.S. Sen. Ron Wyden, a Democrat from Oregon, tweeted along with a link to an article detailing the move.

"Bank of America is reportedly raking in $3.5 billion a YEAR thanks to the GOP tax bill – in response, they're charging customers $12/month for checking accounts that used to be free," U.S. Sen. Sherrod Brown, a Democrat from Ohio, shared on Twitter along with a link to a Wall Street Journal article. "Breaking news: trickle-down economics doesn't work."

"Hey @BankofAmerica husband and I will be closing our account tomorrow," one woman named Heather tweeted. "While we do have direct deposit and still qualify for the free account we will be closing on principle. What about the single mother who lives on minimum wage and already had a hard time feeding her kids?"

Several others also tweeted that they would be closing their accounts with Bank of America in protest of the move to end free checking accounts.

"Hey @BankofAmerica, you are terrible. Shame on you," Will Hailer, a senior advisor to DNC chair Tom Perez tweeted.

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