Bank of America to charge ‘grace period’ fee for some customers
Traditionally, mortgage customers had a 15-day grace period in which they were allowed to make their mortgage payment, without incurring late fees and penalties. However, Bank of America is changing its method in handling the 15-day grace period.
Effective February 14, 2011, Bank of America will begin charging some customers a fee if they make their mortgage payment near the end of the traditional grace period.
In a notice of “Upcoming Change to Fees,” which was sent to customers recently, Bank of America advised that: “If your payment is due on the first of the month and you have a 15-day grace period, you can schedule your payment to be drafted prior to and including the ninth of that same month to avoid a service fee.” However, “[i]f you schedule your payment to be drafted on or between the 10th and 16th of the month, you will be charged a $6 service fee that will be included in your total deducted amount.”
An exception to this new $6 service fee is by making your automatically drafted payment from your Bank of America checking or savings account, even if your payment is drafted on the 10th through the 16th of the month.