Bank Of America To Charge Fee To Pay Mortgage For Non-Bank Customers

Written by Jodi Brooks

DENVER (CBS4)- A new policy change is about to take effect at one of the nation’s largest banks, and its mortgage customers need to know about it.

Bank of America is adding a new fee to customers that don’t bank with them. This new fee policy takes effect February 14, and starting in March the fee will be assessed.

This is the beginning of a trend we will start to see with most banks. The low interest rates we have been enjoying come at a cost.

Persis Schlosser doesn’t bank with Bank of American but said, “they just continue to find ways to out smart the public.”

If your mortgage is with Bank of America, and you pay online using another bank’s checking account – starting this month you risk a $6 fee.

Colin Geiger is a Certified Financial Planner with an extensive background in mortgage services.

“What they are doing is, I would say, giving a bit of preferential treatment to customers who bank with Bank of America versus banking somewhere else,” said Geiger.

Here’s how the new fee works. If your mortgage is due the first of the month, you will always have your 15 day grace period because that’s part of your mortgage contract.

Bank of America is now proposing that if you don’t bank with them, and you pay online, you have until the 9th of that same month to make your payment to avoid a service fee.

If you schedule your payment on or between the 10th and 16th of the month, you will be changed a $6 service fee.

“They have to find new ways to create profit for their shareholders,” said Geiger.

If your mortgage is with Bank of America, and you bank with Bank of America you’re off the hook. Or, if you write a check and send it in the mail, you won’t face a service fee. This fee is for people who use the bank’s online payment tool called Mortgage Pay.

“I beat up on my bank all the time, and I tell them if you charge me these fees I’m going to go elsewhere,” said Mike Kennedy.

Geiger said this might be negotiable.

“There’s potential for that because it can come down to an issue of customer service,” said Geiger.

Not all banking customers mind this new move.

“It wouldn’t bother me any, I would pay my mortgage the day it was due,” said Rich Beutner.

That’s what Bank of America would like to bank on. But for those customers that need time to float their payment, they now face a new fee.

This new fee only applies to people who use Bank of America’s Mortgage Pay program.

Read your mortgage statements carefully. Who knows what bank will do this next, or what new fee will be invented.

Most people in Colorado don’t bank with Bank of America because there are no branches here.

Financial planners do not recommend changing banks to follow your mortgage because they can be bought and sold so often.

  • Brian

    Greed. Sticking it to the people. And if your an illegal alien, your off the hook. Right, BofA??

  • Donni

    They’ve been doing this with mortgage payments made by phone for years. The fees have ranged between $15 to $25 per monthly payment paid by phone from non BOA bank accounts. I’ve personally paid over $1000 in these fees over the last few years.

    • ducksonthewall

      Hey, why don’t we just make it legal that every bank that is sending money for anything gets $6.00 per payment, and every bank or business that receives a payment charges $6.00 extra for receiving the money. Eventually we’d all get fed up enough to stop giving our business to cheaters and con artists in fancy suits. We consumers are not as dependent upon them as they are on us.

      • Michi

        You are right. There is a Don Henley song with a line that says “A man with a briefcase can steal more than a man with a gun” BofA and Wells Fargo are our daily proof that this is true.

        Anyone who CHOSES to be a client of either of these banks is not looking at the big picture. We do control their future by not doing biz with them.

        The problem with mortgages is that there is currently some law that gives them the right to buy and sell your mortgage as though it was part of a game of Monopoly. We need some laws changed.

    • Scott

      Donni….you’re right. BOA charges non BOA account holders $15.00 to make a payment by phone. Ripping people off, as usual.

  • Sonam

    Banks get bailed out by our government with our tax dollars and they stick it to us. Where is all the money the government gave to the banks to help the home owners,and to stimulate the economy I haven’t seen any ! I think we should start going back to the old days of just paying cash for everything and keep the banks out of the loop. That will teach them!

  • Tsjr

    The greed of the banks and the govnerment are going to toppal americas econimey. If it smells like a crook and looks like a crook it is a crook. Its time for america to take back our rights.. If all americans wood quit paying there mortgage for two mones it would stop the crook from bitting the hand that feeds them. We are the payee and we do have the controal. The housing market is so mess up it will take years for it to come back . So lets quit paying the bank and bring them to there nkees.

  • Thanks Barrack

    It has nothing to do with the “bail out” but rather Barrack and his bozos thinking they were doing any of us a favor with ‘bank reform’.

    “BanK Reform” – just another name for another social welfare program aimed at democrat voters. Bought and paid for.

    • THOMAS

      No just like any new law passed by congress whether republican or democratic these laws are passed by a group of lawyers!


      • Michelle

        Last I checked the President was a “Have”

      • Tee

        Very true, all of the pieces were set in motion before Obama got there, he just tried to fix it, perhaps not in the best way possible but an attempt to fix it none the less. Has the world “forgotten” how Bush tried to “fix” New Orleans? Is it “fixed” yet? I haven’t my aunt STILL hasn’t gotten her house squared away, when Katrina hit she was one year away from retirement. Have you not noticed how many more of our elderly population are out in the work force, and I don’t mean just @ Walmart, but everywhere.There’s something terribly wrong with that picture. BTW Citimortage charges $10 to pay online and $20 to pay by phone, go figure we bailed them out, their managers and CEO’s got raises and they are still conducting business as usual “ROBBING US WITH A PENCIL”. I’d like to get away from them but as someone above said mortgages are sold and resold at the drop of a hat. I’d have rather stayed with Cherry creek mortgage company at least it’s local. Talked with Citi about a modification because my husband has unemployed for several months and they had the nerve to purpose that we take their “semi modification plan”. Check this out: only pay $100.00 on a $1177.00 note for 3 months, meanwhile taking the remainer of the monies to correct credit report issues/items and then check back in 4 months to see IF we could THEN QUALIFY for a loan modification. What? They think everyone just got off the boat, it’s takes longer than 4 months to get anything fixed in the credit reporting agencies and if by the end of those 3 months you aren’t able to get the credit report clear you now find yourself in the following predicament. You are now 3 months behind in your mortgage payments, the doorway to FORECLOSURE (although this is WHAT THEY SUGGESTED YOU DO) you have used the monies to fix your credit report so you don’t have it and you can’t meet their unrealistic qualifications for modification. So guess what you are NOW OFFICIALLY S.O.L!!!! They will start processing the paperwork for foreclosure. WHAT A SCAM!!!!! GLAD I DIDN’T JUST GET OFF THE BOAT!!!! I’d rather get the note payed late due to my pay schedule paying for the month at the end of the month and deal with fixing the credit report issues when he gets another job! As opposed to worrying about we have to move, OMG yeah we have no money for first and last months payments and let us not forget a jacked up credit report that actually got taken care of but hasn’t YET hit the wire for anyone to see so they rent you a place. Gotto love it, NOT!! BE smart THINK, don’t just REACT!!!!.

  • Michi

    Bank of America and Wells Fargo are neck and neck in the race to see which is the crudiest American Company currently still operating in America. Hopefully, the winner of this race will become a cellmate of Bernie Madoff’s. Maybe second place winner will also receive this great reward.

    CO BofA ! GO Well Forgo – don’t be left behind ! ! !

  • john

    it is all about greed and profit margins — someone should blow them up along with all of the other corruot industry giants of greed

  • Macy Mae

    BANK OF AMERICA is nothing more then a pack of thieves!!! They acquire mortgage loans and because you do not bank with them they can’t figure out you have been making your monthly pymts. and proceed with foreclosure proceedings. Our Goverment needs to hold these companies accountable and put a stop to these companies run wild and stealing

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