Bank of America Caves: Abandons Debit Card Fee
- Posted on November 1, 2011 at 8:44pm by
Becket Adams
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Although the argument can be made that Bank of America’s decision to impose a $5 debit card fee may have been a bad idea, it seems the mega-bank is not completely out of touch with its customers.
“Consumers have clearly said this is a no-go,” said Patricia Hewitt, who specializes in debit cards at Mercator Advisory Group Inc. in Maynard, Mass., in a recent Wall Street Journal report.
When they originally enacted the debit card fee, Bank of America was met with fierce criticism. However, the bank has listened to its customers and recently announced that it would drop the fee altogether.
As mentioned earlier on The Blaze, this move by Bank of America puts them in the same category as almost every other major bank that publicly announced that they wouldn’t pursue the debit card fee strategy.
“We‘ve listened to our clients’ feedback and will provide the convenience and security of check cards at no additional charge as part of all of our checking accounts,” said Brad Dinsmore, a consumer-banking executive at SunTrust, one of the banks to drop the idea recently.
Likewise, Regions said it is eliminating the fee and will refund fees that already have been charged.
“We have heard from our customers and are responding to their feedback by eliminating the monthly fee,” said John Owen, head of consumer services for the bank, in the Journal report.
The Wall Street Journal Reports:
The about-face represents a concession to customer sensitivities over fees. Banks have been adding charges in an attempt to make up for billions of dollars in revenue that is expected to vanish as a result of new restrictions on credit cards, debit cards and overdraft policies.
A provision in last year’s Dodd-Frank financial-overhaul law halved the amount that banks can charge merchants for accepting debit cards.
Generally, when revenues are sinking, a business will raise it rates to make up the difference. However, as in Bank of America’s case, if customer dissatisfaction is great enough, the business will have to find a different method for generating capital.
That leads to this question: if Bank of America plans to make up for that “billions of dollars in revenue” that vanished with new restrictions, and they found out the hard way that they cannot just impose card fees, how do they plan on raising the money?
(h/t Newser)
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Comments (43)
cemerius
Posted on November 2, 2011 at 3:04pmIt‘s not like they aren’t making a killing by giving all the loans to the illegal immigrant community!!
Report Post »Anamah
Posted on November 3, 2011 at 2:52amBut Cemerius, why anybody blame the lethal tandem Dodd – Frank who again made new regulations to manipulate Banks and ultimate create the fees in each card payment? This two are the authors of the housing bubble Freddie and Fannie, with Democrat Majority in Congress, the mobs extortions, from the Clinton era to the present, to pushing banks to give mortgage to everybody with or without ability to repaid it. I am not an expert but this two are responsible to the disaster we have and this administration is multiplying at astronomical levels. Is this impunity or what? Why there is not an investigation and legal consequences? We should wait until having competent and honest people in charge to investigate and prosecute if is the case.
Report Post »JayCee
Posted on November 2, 2011 at 2:15pmWhat is the BFD about this anyway?
Report Post »Doesn’t everyone shop around for the best deal out there when shopping for goods and services be it a bank, a new car, or a plumber?
alwayshappy
Posted on November 2, 2011 at 2:07pmThank you, Bank of America! I’m proud to be one of your customers! And I don’t use a debit card, either!
Report Post »garclar
Posted on November 2, 2011 at 1:29pmI cancelled my account years ago with BOA when they started charging for every little thing. I now have a mom and pop credit union I have been dealing with for 11 years now and it is like dealing with family. It is absolutely absurd that banks want to charge you for using your own money in a debit account. The big banks give so little to use your money in a savings account it is hardly worth it. I keep most of my money in a safe deposit box anyway………
Report Post »gbisfree
Posted on November 2, 2011 at 12:28pmSo the American public clearly does not want increased fees from the banks, myself included. I think one can draw a similar stance the this small “tax like” increase from the bank is also the feeling from the public that we do not want our taxes raised by the government too.
Report Post »ambrosia
Posted on November 2, 2011 at 12:08pmThe instant outcry from the American people when this fee was first announced
is what forced Bank of America’s hand ….NOT Occupy Wall Street criminals.
Sooner or later. the Bank will find another way to scarf up its initial loot
from consumers…as if they aren’t making ungodly money off them already.
Yes, every business needs to make a profit, no one begrudges them that
but their King George attitude has to stop.
Hard-working American citizens need to take their business elsewhere-
remember, EVERYONE else wants your business, too.
They are waving at you across the street to bring your business to them.
There are still great, folksy small Community Savings Banks in every state
who will covet your business with lots more incentive and lower or no fees.
They will greet you by name and let you know how much they appreciate your business,
Their loan programs, account policies, etc. SURPASS any of the others.
Same with credit unions, the BIG banks hate them.
For years, they’ve tried to lobby, thwart
and cut their throats off with smarmy legislation.
These two sources are the big guys biggest competition….check them out
and choose one instead of shoveling money at the giants.
There are still lots of choices when it comes to YOUR money-
Report Post »shop around & make good ones…. YOU are in charge !
TerryK
Posted on November 2, 2011 at 11:04amGreat News! See what some good public pressure can accomplish for good! Because of Capitalism and competition prices can be keep lower for the benefit of the consumer. The market will determine when prices need to be increased or decreased. This is the way things are supposed to work!
Report Post »AvengerK
Posted on November 2, 2011 at 11:20amBINGO…the consumer decides with his wallet. Liberals have a tough time with this concept.
Report Post »wallst4sport
Posted on November 2, 2011 at 10:52amThe beauty of America, spend / keep your money based on your own choices. Consumers should educate themselves and make choices accordingly in every area. Unfortunately I also believe this is a product of the other major banks not following suit and not because of consumer distain. Big business like big government has learned that what the people want can sometimes be ignored. Your choice of how, where, and why you spend your money needs to be kept a sacred freedom and that is why Obamacare is such a bad idea. When government forces its citizens to purchase products at gunpoint then freedom has exited the building. Dont like your big bank, find a small one, or coffee can. Taxes and fees are forced upon us by government to feed their hunger to grow. We have the choice on most of our other spending. If you have any money left after energy and food costs spend it the way you like while you still can.
Report Post »pinchanze
Posted on November 2, 2011 at 8:44amThis is what I have been talking about for years. If you get a situation that people feel very strong about it can be changed. It can be changed fast! This is the same thing I said about the entertainment industry. The smart entertainers keep their opinions private. The stupid ones keep talking while their $$$$ plummets.
Report Post »Secret Squirrel
Posted on November 2, 2011 at 10:33am.
Report Post »“Consumers have clearly said this is a no-go,”
Bullcrap.
BOA knew what consumers thought and didn’t care.
BOA caved because ALL the other banks caved,
and they would be the only one charging the fee.
Alvin691
Posted on November 2, 2011 at 7:15amI am making the claim that BofA is playing games. They inacted the charge with the intention of dropping it to give street cred to the Occupy protests. Remember that BofA was the bank that allowed illegals to get credit without proper identification. Their policies have been pro-liberal for years and pushed the concept of microloans. Read this – http://en.wikipedia.org/wiki/Microcredit
Report Post »Sniper48
Posted on November 2, 2011 at 7:01amBOA will extract a ‘pound of flesh’ in some other way and it will take at least a decade for Congress to figure out what has happened. We have the best Congress money can buy.
Report Post »Getten
Posted on November 2, 2011 at 5:59amI wonder how much longer it will take for Americans to really use their united economic clout to change the broken system we live under. Americans should wake up and realize the way they decide to spend their money determines how the world works. Multinational corporations will pay attention to the damage they are doing to the US when the people cut off their cash flow. Wake up, America! Use your economic power in conjunction with your political freedom to change the broken system we are living in!
Report Post »1947
Posted on November 2, 2011 at 3:00amDon’t be confused at this kind thing the bank has done. They’ll get you another way….. what was the main movement on there part was “Credit Unions”……!!!!!!!!
Report Post »Taquoshi
Posted on November 2, 2011 at 11:33amThe words “kind” and “Bank of America” should never occur in the same sentence.
Report Post »cactiv
Posted on November 2, 2011 at 2:41amDon‘t know what happened to my last post so I’ll keep this shorter, in case it ‘shows up’. BofA, $6 Billion in PROFITS last quarter. Wachovia, $160 Million in fines for laundering btw $150 and $400 Billion in drug money. The vet “who shoulda stayed home” laying on the ground severely injured, 6 or 7 come to help him and Oakland Stormtroopers lob tear gas/stun grenade right into the middle of the group. From 10 feet underhanded. VERY intentionally, guilty of assault, criminal malice and intent to do bodily harm. This whole group should be fired and prosecuted. PS: on BofA, this is but one of the many complaints OWS is bitchin’ about, but they had nothing to do with it? And none have a job or a bank acct? And while half the readers here probably condone these cops violence, that stupid move will cost them dearly in the end I’m afraid.
Report Post »Taquoshi
Posted on November 2, 2011 at 11:38amOh, so you saw that news article, too? I thought I was the only one. I can’t figure out how they can post a profit, but be weighed down with all the foreclosed properties, unless they sold Countywide off or Warren Buffett tossed more money down the rat hole.
Report Post »cactiv
Posted on November 2, 2011 at 2:31amI love these folks that claim ‘this has nothing to do with OWS. This kind of highway robbery is exactly ‘just one’ of the many complaints OWS and millions of working people are sick of. And while BofA is crying the blues, they made $6 Billion in PROFITS last quarter. Apparently that wasn’t enough. And I‘m skeptical of their claims they’re about to lose billions. No, Americans are about to get billions back they’ve been getting fleeced for. For all those whining about OWS, at least they’re making the effort t opu a public face on the debacle. And how ’bout Wachovia getting a slap on the wrist for drug money laundering up to $400 billion? No indictments. $160 million fine. Shhhhhh! Don’t remind people! And what the Stormtrooper intentionally did in Oakland to the ‘downed’ Vet and the 7 trying to help him should earn him an automatic firing and prosecution for assault, criminal malice and dereliction of duty. Along with the others who stood there and watched it go down. If they all weren’t in on the plan to start with. And I‘ll bet most of them weren’t Demorcrats either. An intentional grenade into a group trying to help an injured person. They‘re lucky they didn’t cause an outright riot right then. I’m sure this is not over for them, that was WAY beyond the pale, and fully intentional in causing bodily harm while others were only trying to assist an injured person. It’s sickening. The only thing sicker are those who advocate this type of violence. That’s hal
Report Post »cactiv
Posted on November 2, 2011 at 2:43amSorry about the double post. I refreshed the page twice to try and avoid it. Maybe a ‘conservative God’ thought the point should have been embellished :O
Report Post »Ghandi was a Republican
Posted on November 2, 2011 at 2:05amThere wasn’t any problem and everyone was happy until Dodd/Franks. Repeal the entire obama/pelosi/reid/soros’ agenda. Only the progressives can make last year look like the good ol’ days!
Report Post »OldOllie
Posted on November 2, 2011 at 12:33amI was kinda hoping they’d stubbornly stick to this idiotic idea till they lost ALL their customers and went out of business. Damn, I HATE these rotten bastards. Why in the hell does ANYBODY do business with them?
Report Post »lukerw
Posted on November 1, 2011 at 11:03pmThis is Not “caving in”… it is a reasoned Business Decision.
Report Post »Taquoshi
Posted on November 1, 2011 at 10:48pmThat leads to this question: if Bank of America plans to make up for that “billions of dollars in revenue” that vanished with new restrictions, and they found out the hard way that they cannot just impose card fees, how do they plan on raising the money?
BoA is in deep kimchee and they know it. They are bleeding red as depositors close their accounts and walk out the door. However, don’t be fooled. This is just a temporary stop gap measure. They will have to raise the short fall in cash somehow and that somehow is through their depositors. How much money has Warren Buffett thrown at them now?
BoA and many others like it are COMMERCIAL banking institutions. Personal checking and savings are not their bread and butter, major financing is. There is no substitute for solid accounting practices, fair rates and general accountability. Those who have waltzed out the door with their closed accounts should look for a savings and loan bank or a credit union.
Report Post »jzs
Posted on November 1, 2011 at 10:42pmAnother victory for OWS.
Report Post »COFemale
Posted on November 1, 2011 at 11:13pmOWS had nothing to do with this.
The American people who actually have bank accounts and banking cards said they would move their accounts. Wells Fargo abandoned this idea also, thank goodness as I was lining up a credit union just down the street. I still might move some money over there.
Report Post »Therightsofbilly
Posted on November 2, 2011 at 1:35amHey JZS
You are just over the top, googley eyed, in a cold sweat, in love with these owsers.
Really amazing that someone who claims to make twice the national average would have such an affinity for such a sleazy, low life, bottom feeding, astroturf, filthy marxist cadre of human debris.
Why don’t you quit your job and go join them? You know you want to. You told me a while back that if you had been born a little earlier you would have liked to have been a hippie. (No surprise there)
Come on dooood, show some commitment, join the fray, take a crap on a cop car, pedal a generator bike, do your part for the collective.
Why not? Don’t have what it takes to be a real owser?
I guess you would rather sit back and enjoy the fruits of your labor like normal folk after all huh?
Just a wanna be radical.
Report Post »investlite
Posted on November 2, 2011 at 4:07amThe reason for anyone to be on the left is laziness. Once people open their eyes to the FACT that government social programs don’t work, they see the lib agenda for what it is. They pander to the lazy. They attempt to give the lazy the moral high ground (hey look you’re helping others, less fortunate, by paying taxes), but it all falls flat under cross examination. All these programs do is remove unity from the commUNITY. Now joe doesn’t have to worry about the guy down the road starving because his conscience is clear, he is paying his taxes and uncle sam is supposed to take care of that guy. It’s not joes fault if uncle sam is letting him starve to death. it’s all about getting rid of their guilt in the easiest way posssible. They don’t have to write a check to a charity, they don’t have to find someone in need and help them. The money is automatically taken from their check w/o option. The left is to blame for 99% of poverty, racism, hatred, and laziness.
Report Post »Taquoshi
Posted on November 2, 2011 at 11:45amCofemale,
Wells Fargo is just the latest iteration of the old Union Trust bank, which stunk to high heavens in regards to customer service. I moved my accounts from them before they bought Wachovia because of Wachovia’s really good reputation. Then they proceeded to drive that into the ground.
At my job, they pulled a slimy maneuver involving using some images and two that we clearly told them we did not have permission or releases for. But they went ahead and used them anyway. Big mess. We also had trouble getting the credit for the images posted by them.
I would advise you to seriously consider your local credit union or savings and loan association rather than Wells Fargo.
Report Post »Therightsofbilly
Posted on November 2, 2011 at 11:57am@INVESTLITE
Well said !!!!!!!!
Report Post »AvengerK
Posted on November 2, 2011 at 1:42pmLOL….yes please JZS…show me where OWS directly affected this reverse when the official statement from BofA and all news reporting indicates without question- that the customers threatened to pull their accounts if the fee was imposed. The customers spoke with their wallets JZS-that’s right JZS…the free market, the consumer- while your beloved 99% of all household germs sat on their yoga mats with their $5K laptops trying to hide rapes and illicit drug use from TV cameras. Please JZS…I’m begging you…show me where OWS directly affected this change in policy. Shut me up kid…I dare you.
Report Post »AvengerK
Posted on November 2, 2011 at 1:45pmCOFEMALE…please do not take do not take TAQOSHI’s advice at face value. Examine your holdings and your investment goals and go over them with your financial advisor. Hasty decisions can be VERY costly. Be smart.
Report Post »endgamer
Posted on November 1, 2011 at 9:45pmI called my bank which is Sun Trust and they abandoned it as well..Official announcement tomorrow Nov 2nd. I was calling them to see if they reversed their position as I was going to move my money to a local bank. I still might. Love their hours though.. TD bank would be great! None in my area yet.. Open on Sunday!!
Report Post »the hawk
Posted on November 1, 2011 at 9:51pmA victory for the people ! now lets refuse to borrow unless the interest is fair !
Report Post »garyM
Posted on November 1, 2011 at 9:22pmPeople have gotten wise to the credit card theiving, many people have put their nose to the grind stone and paid off their credit cards and cut them up. They CC companies went up on everyone’s interest rate even if they had made payments on time and was ahead of the minimium payment. They did this ahead of Obama’s new credit card regs, Obama gave the card holders a good screwing, if he was gonna regulate them he should have made the reg retro. They were trying to make up some difference in their losses with the 5 dollar debit card fee, they are thieves, worse than the guy in the dark alley with the stub nose 38!
Report Post »flyoverbob
Posted on November 1, 2011 at 8:53pmThis is how the free market works,the people were pulling their accounts and the banks had to respond.I know you libs want to enact some more regulations but as just proven we dont need you.The people have spoken and not the ows bunch,but actual bank customers.
Report Post »investlite
Posted on November 2, 2011 at 4:12amAmen. This is a testament to the free market.
The world runs on greed, the only way it benefits everyone is if everyone has the opportunity to be greedy. Name a socialist or communist country where the people have the opportunity to be greedy. there isn’t one, the only people that get to be greedy there are the ones at the top.
The people would have brought BofA to its knees because they were free to be greedy (they wanted to keep their $5 per month). It’s a society that oppresses greed that is scary.
Report Post »KickinBack
Posted on November 1, 2011 at 8:52pmToo bad that won‘t be enough to make the campin’ commies to go home.
Report Post »I.Gaspar
Posted on November 1, 2011 at 8:48pmPerhaps they should charge Dick Durbin personally for the money.
Report Post »AvengerK
Posted on November 2, 2011 at 1:54pmLikely what will happen is the banks will find a way to hit the vendor again for the added cost and the vendor will offset it by raising the price on the consumer….thanks Dick Durbin.
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