B of A may reconsider debit card fee
A news report says the hugely unpopular $5-a-month fee will be retooled so more customers can avoid paying it.
Bank of America's much-despised $5-a-month debit card fee may not materialize next year as planned.
Reuters, citing "a person familiar with the bank's plans," says B of A may make it possible for many customers to sidestep the fee, which has drawn intense criticism since it was disclosed last month.
Reuters says: "The second largest U.S. bank is likely to allow many customers to avoid the fee by taking measures such as maintaining minimum balances, having paychecks direct deposited, or using Bank of America credit cards, the person said."
That report followed news that JPMorgan Chase will drop its test of a similar fee and wouldn't be imposing it on any Chase customers. Other large banks, including Citibank, U.S. Bank and PNC, have also said they don't plan to charge customers a monthly fee for using debit cards, which top credit cards as Americans' favorite form of plastic. Post continues below.
The LA Times says, "Citibank has said its customers really hate the idea of debit card fees. It has raised its fee for a basic checking account but has said it won't impose a debit fee."
That likely means that other fees will be coming down the pike. Banks blame new federal regulations that substantially reduced the amount of the "swipe fee" they can collect from merchants every time a debit card is used. The average of 44 cents per transaction has been cut to no more than 24 cents.
"We're going to see more creative, stealth-like fees," Dennis Moroney, research director at TowerGroup, told SmartMoney. Among the possibilities:
- A fee for not using your debit card each month.
- Fees for paper statements or speaking to a teller. These fees are already in place at some banks.
- Higher overdraft fees.
Fees are inescapable, but it seems that big banks will pay attention when customer fury is sufficiently loud and intense.
More on MSN Money:
Too little, much too late, BOFA! It was with great pleasure that I finally, after weeks and months of doing nothing, finally took action. I visited my local branch and CLOSED my account. I cut up my debit card into tiny little plastic pieces in front of the customer "service" representative (who, by the way, did nothing to convince me to stay).
This account dated back 40 YEARS! I opened it in 1971 with the old First National Bank of Boston, which became BankBoston, which became Fleet Bank which became BOFA. With each change of ownership, service declined, fees increased and I felt appreciated less.
As a business school graduate, I know it takes hundreds, sometimes thousands of dollars to attract a new client to a business. Because of BOFA's greed, arrogance and stupidity, THEY walked away from a 40-year relationship. May their stupid fees serve them well.
PEOPLE - PLEASE do as I did. Go open an account at a credit union or a community bank. They are not charging $12 per month for a checking account. They are not charging $5 per month for debit card use. You can open an account for as little as $25. Credit Unions cooperatively have something like 6,000 ATMs throughout the country and have cooperative reciprocal agreements with many small banks. They are pleasant, they tend to have workers who stay with the bank or credit union for years and who come to know you and your family. They WANT your business and they are invested in your community. Let the BOFAs of the world wither and die. They deserve it.
By the way, I saw on the news this evening that credit unions and local banks are doing a booming business. They are opening 3 times the number of new accounts they usually open. Bye-bye BOFA, Citi, Wells-Fargo and all the others... You're NOT to big to fail!
After nearly 20 years with bofa, standing by them after the bailouts/large exec pays ....THIS ONE took me over the edge .....they've taken the little guy for granted for the last time! Ive opened an account at my local credit union and they can now KISS MY ****!
Im closing all 3 accounts because ive HAD IT! Shove it bofa, you'll learn the HARD WAY that you should appreciate your customers MUCH MORE than you are!!!
BofA if you want to increase you income I have a plan: CUT OUT OF THE BONUS'S OF
YOUR CEO & CFO that should increase your income!! They will just have to come to work in a smaller car and they will have to down size their luxury sailing yacht to a smaller sail boat.
BofA is like netflix ...gready!!!! I cancled my account when they raised the rates at netflix...
Get your account closed, and let them know how you feel.
BUT DONT leave your money in their bank!!
The best way to let them know how you feel is remove your money, and dont look back!!!!
@ Nelsonpt22 ... It's rather easy to the person you claim to be on the internet. Anonymity does have its privileges.
I used to be BofA customer, until they imposed fees on my account which caused my account to overdraft once, which then caused even more fees for a bounced check. Then I moved to Wells Fargo, until they started to charge a $10 a month service fee.
And then I moved to a local credit union... The absolute best decision I have ever made.
Keep your money local.
I closed my Bank of America account last month because of the fee they had planned to charge me. A move I probably should have done years ago. They fee you to death. They offer no mercy even in these hard economic times. They look upon us as $$$$ not customers who have real financial issues in these days. Many are suffering because of lost jobs. My neighbor was foreclosed on by BofA last month. They didnt take the time to listen to his hardship plea. He lost his job after 28 years as a senior vice president of the firm he worked for. BofA turned a deaf ear and moved him out. He is staying with me because I will not allow friends to sleep in the street. Kinda the Golden Rule that many have forgotten.
I had have my BofA account since since 1966. When I closed the account last month I asked the assistant manger if he wanted to know why I am closing the account after all these years. His response was, "I am sure you have a good reason, but I dont need to know."
Aloha nui loa to BofA.
Yesterday I checked my account and there was a new fee on my Bank of America online statement. BoA just charged me $2 for using a Checkpoints machine and I have direct deposit! The Checkpoints machine doesn't belongs to BoA, but they didn't charge me a penny and my bank, BoA, did! BoA never charged me before for a transaction at the Checkpoints machines and that was the main reasons for which I use them an not any other ATM's from other banks. I guess the fees are going to mount to way over $5 a month and honestly, that is outrageous. It's obvious that BoA is going to get money from its customers one way or another. I am joining a Credit Union right away. I believe they would take care of my money, not steal it from my own pocket.
This Bank ? announced 4 years ago that it would except and allow Illegal Aliens to have Credit, Checking, Loans all the while they did not need to show previous Credit nor would they be subject to the Credit standards all of the rest Legal Citizens do. That program ran amuck and still to this day has created large hit. BoFA has tried everything to hide this failure and increase profit to displace the losses from an "in your face" strategy! WE HAVE MOVED!
I set up my first checking account at the age of 18 with BofA. I was about to attend college out of state, so having an account with a national bank that was close to my home as well as my campus sounded like a great idea. Everything went well, at first, but I noticed that every so often, I was charged an overdraft fee. I would look at my account before using my debit card and would see sufficiant funds without any pending transactions. The following week, however, the order of my debit card purchases was rearranged, resulting in an overdraft (sometimes multiple overdrafts, creating a combined fee of almost $100).
I've learned my lesson about big banks. I now hold an account with a credit union, and I've been nothing but pleased. I've spoken online and over the phone with a representative who has answered all of my questions, and it feels great to speak with someone who has customer service in mind.
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
ABOUT SMART SPENDING
LATEST BLOG POSTS
The Consumer Financial Protection Bureau's complaint database highlights the worst problems people have with collectors.
VIDEO ON MSN MONEY
BLOGS WE LIKE
MUST-SEE ON MSN
- Video: Easy DIY smoked meats at home
A charcuterie master shares his process for cold-smoking meat at home.
- Jetpacks about to go mainstream
- Weird things covered by home insurance
- Bing: 70 percent of adults report 'digital eye strain'