PHILADELPHIA (CBS) – A policy change by the country’s top bank has some mortgage customers crying foul.
Some Bank of America mortgage customers will receive a not-so-sweet change to their monthly mortgage bill grace period. It takes effect on Valentine’s Day, February 14th.
Joe Ridout from Consumer Action said, “They’re reducing the grace period in which you can pay your mortgage fee for free from 15 days to nine days if you’re paying from a different financial institution.”
That means if you have a mortgage owned by Bank of America and you pay it with your Bank of America checking account, there is no change to your 15-day grace period. But if you bank somewhere else, like Wells Fargo, and you pay your Bank of America mortgage from that checking account your grace period is knocked down to nine days. Pay after that and you’ll be hit with an extra $6 fee.
So why the change? Bank of America, like other banks, is looking at new ways to recoup the $2.3 billion dollars in overdraft feeds that they’ve lost since recent banking reforms have been put in place.
Don’t be surprised if other banks follow suit. In fact, you probably can bank on it.
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Reported By Jim Donovan, CBS 3