Big Banks Blink on New Debit Card Fees

Friday, October 28, 2011

Thanks to a lethal mix of Occupy Wall Street fervor, livid consumers and Washington politicians running for reelection and most of the big U.S. banks have decided to steer clear of imposing debit card fees.

The Wall Street Journal reports:

J.P. Morgan Chase has decided that it won’t charge customers who use their debit cards to make purchases, according to a person familiar with the bank’s plans. The New York bank’s Chase retail unit is one of the largest U.S. consumer banks, with 26.5 million checking accounts and 5,300 branches.

U.S. Bancorp, Citigroup, PNC Financial Services, and Key Bank join the list of banks that announced in recent days that they won’t impose monthly fees on debit cards.

This means Bank of America is going it alone with plans to nickle and dime bank customers with a $5 monthly service fee to use their debit card.

Community banks and credit unions are tapping into customer rage over these debit card fees by encouraging consumers to move to small community-based institutions and credit unions. Bethpage Federal Credit Union in New York, for example, said this week it signed up 1,500 customers—twice its normal rate, since Bank of America’s plans became public.

How long is Bank of America willing to stubbornly hold fast to its plans to implement a $5 monthly debit card fee and in the process, drive itself over the cliff into oblivion?

This entry was posted in Bank of America, Business, Corporate Greed, News and tagged , , , . Bookmark the permalink.

9 Responses to Big Banks Blink on New Debit Card Fees

  1. Marcus Ybanez says:

    Bank of America is no longer interested in small deposit bank customers.

    People like retirees and students cost them money. Now, their focus in on corporate banking and international customers. A friend of mine was in China this year and he said BofA is busy opening branches in Shanghai and Beijing as they close branches in states across the USA.

  2. Shayne K. says:

    Why anyone would bank with B of A is beyond my comprehension. There are so many other options out there to chose from. Seriously, is you’re still a B of A victim, time to move on!

  3. Brigadoon says:

    I give Bank of America 30 days and they will drop the planned Visa debit card fee. This is a public relations disaster for them and they announced it near an election year. You just know the Obama White House has emissaries begging them to drop it.

  4. Walk on Socks says:

    Here’s the asshole Bank of America executives rationale for the debit card fees.

    “We need to make a profit.”

    OK. I have a simple idea that might point BofA toward profitability: start lending again. That’s right, start lending to potential home buyers and small businesses. The interest on the loans is profit. This is how the system of capitalism has worked for eternity.

    You don’t shake down bank customers with usury fees to reduce the loss column. Don’t they teach Econ 101 anymore in universities?

  5. Pechanga says:

    Bank of America is definitely running scared.

    I saw an internet article this afternoon claiming they’re ready to announce a myriad of ways bank customers can avoid the debit card fee providing customers maintain $20,000 daily balances, have a regular Visa or a house mortgage or auto loan. I say baloney. Change to a credit union and be done with the insanity and done with Bank of America!

  6. Big Hank says:

    BofA can go screw itself.

  7. Estacada says:

    “avoid the debit card fee providing customers maintain $20,000 daily balances…”

    Pechanga, really? How many people maintain “daily” balances of $20,000?

  8. Joe in Colorado says:

    Bank of America isn’t the only game in town when it comes to banking products. If they continue to act as if they offer something unique and special, I can easily see a time in the very near future when they are forced to sell off portions of their company and their size and presence will shrink and their brand will fade into history.

  9. Fran says:

    I hope B of A keeps their skanky fee & sees a mass exodus of customers.
    Because other customers who have bigger accounts or loans w them might just walk too.
    It would be classic for their own greed to do themselves in.

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