April 19, 2000

Bank Fees Spark Protest Outside Fleetboston Meeting

By KENNETH R. GOSSELIN

Fed up with rising bank fees, angry protesters demonstrated outside the annual meeting of FleetBoston Financial Corp. Tuesday, arguing that the rising costs of banking are hurting most those who can least afford it: low- and moderate-income families.

About 50 protesters, mostly from community groups in the Boston area, demanded to talk with FleetBoston executives who were speaking to shareholders gathered at the World Trade Center. But the protesters were blocked from entering the meeting by Massachusetts state police.

"We have a right to be here! We have a right to be here!" they chanted repeatedly, later adding, "We're fed up with these fees! We're fed up with these fees!"

The demonstrators were upset about rising fees now that BankBoston accounts are starting to be converted to Fleet accounts. BankBoston and Fleet merged Oct. 1 to form FleetBoston.

In Connecticut, the majority of BankBoston branches and accounts in Greater Hartford have been sold to Sovereign Bank. Even so, roughly 59,000 BankBoston accounts elsewhere in Connecticut will be converted to Fleet accounts in September.

The conversion process is starting earlier in Massachusetts, and it helped spark Tuesday's protest. But leaders of the demonstration also said there were broader concerns about the ongoing consolidation in the banking industry, and how choice for consumers is dwindling.

While FleetBoston chief executive Terrence Murray and other executives patted themselves on the back for rising profits inside the annual meeting, protesters outside said fees have become more burdensome as banks have grown in size.

"Fleet is the feudal landlord," said Bruce Marks, leader of the Boston-based Neighborhood Assistance Corp. of America, a community activist group that also oversees mortgage programs for low- and moderate-income borrowers.

Marks presented a proxy to gain entrance to the meeting for himself and other protesters. But FleetBoston officials said Marks did not have enough documentation.

FleetBoston offered to allow Marks and one other protester inside, but Marks refused, saying all should be allowed into the meeting. There was a brief scuffle with police.

Of particular concern Tuesday were changes to the old BankBoston basic checking account. BankBoston had an $8.50 monthly cap on fees. FleetBoston has no such cap.

BankBoston also had allowed 10 debit transactions and four ATM withdrawals a month. There was a charge of 75 cents for each additional transaction, compared with a $1 charge at FleetBoston.

The fee structure has not been determined for Connecticut, but it is likely to be similar to the one in Massachusetts, FleetBoston officials say.

The fee issue also was raised by a shareholder in the annual meeting. Murray said two-thirds of BankBoston customers would see no change or a reduction in fees. A third will see a "modest increase," he said.

FleetBoston executives said there are no immediate plans to make any changes to the fee schedule.

But Gail Snowden, managing director of the community banking group, said FleetBoston needed time to review the fee schedule, and would listen to concerns that community groups expressed.

"We don't want to negatively impact lower-income people," Snowden said.

The protesters left the meeting before it ended, saying they intended to pass out fliers at local Fleet branches in Boston, and would bring the debate to regulators, and even Congress.

"Today is just the beginning," said John O'Connor, a community activist from Cambridge, Mass. "This is just the beginning to get Fleet to end a predatory fee structure."

This article is reprinted here for non-commercial, educational, fair use purposes only.