A report from The Wall Street Journal on Friday revealed that the head of Chase Bank warned its customers to prepare to pay for bank accounts.
Marianne Lake, who runs the bank, the franchise inside JPMorgan (NYSE:JPM) Chase, is said to have warned that new rules, such as capping overdraft and late fees will mean everyday banking is significantly more expensive for Americans.
Lake reportedly told the publication that Chase is planning to pass on the costs of higher regulation and charge customers for several of the currently free services, including checking accounts and wealth-management tools, if the rules become law in their current form. She also expects peers to do the same.
Lake's warning comes due to new financial regulations coming out of Washington, with agencies including the Consumer Financial Protection Bureau proposing an $8 cap on credit-card late payment fees and a $3 cap for overdrafting bank accounts, as well as other regulations such as further limiting debit-card fees and more.
While it isn't the first time banks have warned they would pass on higher costs to consumers when regulators attempted to cap their fees, they state it could be different this time due to the scale of the potential new financial regulations.