ConsumerWatch: Bank Of America Changes Mortgage Grace Period
SAN FRANCISCO (CBS 5) – A policy change by the nation's largest bank has some mortgage customers crying foul.
Starting February 14th, Bank of America will reduce the grace period for mortgage customers who don't bank with them.
Joe Ridout with Consumer Action believes it's just another way for Bank of America to make up for $2.3 billion in overdraft fees they used to make prior to financial reform.
"They're reducing the grace period in which you can pay your mortgage fee-free from 15 days to 9 days if you're paying from a different financial institution," Ridout said. Consumers that pay the mortgages through a Bank of America account will keep their 15-day grace period. Any payments made after the grace period will include a $6 service fee.
(© 2011 CBS Broadcasting Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.)
