Bank of America defends $5 debit card fee
Reports say the bank has started lobbying Congress and federal regulators to keep its planned fee intact.
The bank has launched a massive lobbying effort to support the fee, Fox Business reports. The bank is contacting members of Congress as well as the new Consumer Protection Bureau to explain the logic behind the fee.
It may take some convincing to keep the Consumer Protection Bureau off of its back. The bank is worried that the consumer bureau might try to force a reversal of the fee, reports Charlie Gasparino. "Because of all the new regulations, we lost lots of revenues and these fees only partially make them up," a bank executive told Fox Business.
What regulations? The banks say a new cap on the fees it charges retailers and other vendors is going to hurt. Starting Oct. 1, the maximum fee merchants will pay is 24 cents per debit transaction. Prior to the change, the current average was 44 cents, based on the $38 average debit purchase.
The new caps mean banks are out billions. Bank of America alone will see its annual revenue drop by $2 billion. The bank says the new $5 monthly fee for debit card users will restore some of that money.
The fee has provoked outrage from many Bank of America customers, and some have switched banks. The bank's website was down for several days this month, which didn't help customer loyalty one bit.
So will all that lobbying rein in the Consumer Protection Bureau? We'll see.
| Tags: | BACKim Peterson |
i wonder how much $$$ goes to the CEO and bloated staff?
Maybe its time for BOA executives to take a pay cut and cut their bloated overhead. After they do that, then, maybe people could accept the fees. However, to charge fees so the greedy executives can still receive millions in bonuses is not right.
Maybe its time for BOA executives to take a pay cut and cut their bloated overhead. After they do that, then, maybe people could accept the fees. However, to charge fees so the greedy executives can still receive millions in bonuses is not right.
While BOA is reducing their overhead, they can fire the PR firm they plan to spend millions with that will try and convince people BOA is entitled to said fees and the fees are not silly or onerous.
B O A set up my business account that mandates that I make at least 1 debit transaction each month or i will be charged a fee. So I make my transaction per the requirements. Now B O A tell me that they are going to charge me 5.00 for making that same mandated transaction. HUM, sounds like I am getting shafted either way. Bye Bye B O A. Say hello to my little friend, "CREDIT UNION"!
DEAR C E O OF B OF A.
DO YOU GUY'S REALLY THINK THAT THE REST OF US PEONS THINK THE ONLY WAY YOU GUYS MAKE MONEY IS BY RAISING FEES?
YOU BORROW FROM THE DISCOUNT WNDOW @ 1/2 % AND LEND IT OUT AT 4% ON MORTGAGES!!!
tHATS 350 BASIS POINTS PROFIT!
YOU LOAN WALL STREET MONEY OVERNIGHT @ 1 1/2% THATS STILL 100BASIS POINTS POSITIVE CARRY!
YOU GOBLE UP COUNTRY WIDE MORT CORP THINKING YOU WERE MAKING A KILLING, NOT THINKING THEY WERE PART AND PARCEL OF THIS WHOLE FINANCIAL MESS WERE IN.
YOU BOUGHT OUT MERRILL LYNCH AND GOT US THE TAX PAYER TO HELP YOU DO IT!
STOP CRYING IN YOUR BEER, STOP LEAVING US THE PUBLIC LITTLE NOTES LIKE " WE HAVE TO RASE FEES, F. U. I CAN"T GET A LONG ON MY MILLION DOLLAR SALERY, F. U.
MY HOUSE IN LARCHMOUNT NEEDS ANOTHER ADDITION, F. U.
It took me 3weeks to figure out F. U. doesn't mean Felix Unger
Want a solution. When they start charging fees to use the debit card, cancel it. We all got along fine before there was Debit cards, we can do it now.
If you need cash go inside the bank and get it, and then the bank will have to hire more employees to handle the rise of customers at the window. They loose.
You know something I've been a BOA client for 8 YRs or longer. And now they want to charge for using debit. That's all I ever use. DID THEY GIVE A LOT OF BANKS MONEY TO BAIL THEM OUT OF DEBT? I THINK THEY DID! And now they wanna stick it too us cause the money is all gone that's not right. It's not are fault that they gave raises to the CEO and other's and that BOA don't know how to manage there money! I work two jobs and make 1,200 a month. And that's two jobs even. The BIG WIGS NEED TO BE IN MY SHOES AND OTHERS too see what the real world like.
BOA IS GOING TO LOSE LOT OF CUSTOMERS BUT THEY DON'T CARE ALL THEY CARE IS ABOUT MONEY.
MONEY IS THE ROOT OF ALL EVIL ! PRETTY SAD
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