Chase Bank customers could see additional fees in the not-too-distant future.
THE The Wall Street Journal reports The country’s largest retail bank warns it could start charging customers for using their accounts, impacting some 86 million customers.
The potential fees are the result of new regulatory rules that cap overdrafts and late fees, said Marianne Lake, managing director of JPMorgan’s retail and community banking business. Lake said Chase will pass the extra fees on to its customers, ending services that were once free, such as checking accounts and wealth management tools. And she expects other banks to follow suit.
The threat of charging for once-free services is not new. More than a decade ago, many banks announced they would add service fees to debit cards because of regulatory changes. But few have done so, fearing a consumer revolt.
This could happen again, especially as consumers face inflation and rising costs of living, but it is not certain.
The new rules would cap credit card late payments at $8 and overdraft fees at $3. The new capital rules would also require them to set aside more reserves for mortgages and credit card loans, which could impact consumer lending potential, banks warn.
“It’s not practical for many services to be free if we can’t tap into those revenue streams,” Lake said.
Of course, whether these rules take effect will depend on the outcome of the November election. Donald Trump could overturn or dilute them. Banks have filed lawsuits to block their implementation. Some of these cases are currently before the courts.
This story was originally featured on Fortune.com
