Bank of America sending notices of annual fees on some rewards credit cards to customers

BofA to charge annual fees on rewards credit cards

NEW YORK — Bank of America Corp. is sending notices to a limited number of customers that it will start charging an annual fee for some of its rewards credit cards starting next year.

The $29 fee will be applied every February, according to a letter sent to a customer and obtained by the Associated Press.

“We’re testing this to see what the feedback is. In terms of any plans going forward, we haven’t made any decisions,” said Betty Riess, a spokeswoman for Bank of America. She said the fee is being “tested” on 1 percent of its credit card accounts globally, but declined to give specific numbers.

The notices of the new fee comes after the nation’s largest bank recently vowed not to hike interest rates on credit cards ahead of the sweeping new credit-card reforms that go into effect in February.

The new law limits how and when banks can hike interest rates and fees on credit cards.

Analysts have predicted banks would make up lost revenue by charging annual fees on credit cards and checking accounts, even for customers in good standing.