If you're a Chase Bank customer, what comes next may not please you. Although many consumers have raised their voices in recent months, the bank has chosen not to listen. Despite the growing discontent, Chase has made a firm decision.
It will move forward with its plans, meaning significant changes that will directly affect your wallet. The financial institution has updated its website to announce that, starting August 24, it will increase the monthly service fee for its most popular account, Total Checking. It will go from $12 to $15.
Although it may seem like a minor adjustment, for millions of customers it represents another blow amid an economy that already demands a lot. This increase comes in a context where Chase Bank had already made it clear it was not willing to give in to government regulations. In 2023, the Biden administration proposed limits on bank overdraft fees.
The unexpected announcement from Chase Bank
This measure aimed to protect users and prevent banks from imposing excessive fees. If it had been implemented, families could have collectively saved up to $3.5 billion (3,500 million) annually, according to estimates from the Consumer Financial Protection Bureau (CFPB).
The proposal included setting caps between $3 and $14 per overdraft, aligned with the actual costs for banks. However, institutions like Chase strongly opposed it.
The CEO of Consumer and Community Banking at JPMorgan Chase warned that if those changes went into effect, the costs would be passed on to consumers. As a result, free services would be eliminated or other fees would be raised.
Despite regulatory opposition, former President Donald Trump signed a resolution in May that revoked the CFPB's final rule. With that victory in hand, one would expect banks to stop the increases, but the reality has been different. Chase not only continues with its plan, but is accelerating it.
Chase Bank reviews the conditions
In addition to the increase in the monthly fee, Chase is also reviewing other conditions. The bank states that customers will be able to avoid the new fee only if they meet certain requirements.
It could be making direct deposits of $500 or more, keeping a minimum daily balance of $1,500, or having a combined balance of $5,000 across linked accounts. Otherwise, the charge will be applied automatically.
This type of decision has caused criticism from users. They believe that large banks like Chase should focus on making access to financial services easier, instead of making them more expensive. Even so, everything indicates that Chase Bank will move forward with its plans, ignoring the concerns of a significant part of its customer base.