Battered Bank of America Drops Debit Card Fee PlanIs Occupy Wall Street working? Bank of America (BAC) announced on Tuesday that it's dropping its plan to charge a $5 monthly fee to customers who use debit cards for purchases.

"We have listened to our customers very closely over the last few weeks and recognize their concern with our proposed debit usage fee," David Darnell, co-chief operating officer of the bank said in a statement on Tuesday. "Our customers' voices are most important to us. As a result, we are not currently charging the fee and will not be moving forward with any additional plans to do so."

Since the Bank of America announced the $5 monthly fee on Sept. 28, some customers fled the bank, saying it was one fee too many. The financial institution said it does not break out numbers for total accounts closed by the month, a spokesperson said.

Other banks that had instituted a debit-card fee or were testing the idea of debit-card fees have also dropped their plans as well.

For Bank of America, the damage could already have been done.

"By claiming that it has 'listened' to customers and discontinued the fee, it only raises the question: Why didn't they ask customers about the fee before implementing it?" said Ron Shevlin, senior retail bank analyst with the Aite Group. "In addition, the bank will be seen as nickel-and-diming their customers, and not very decisive about how to run its business."

Bank of America notes that no new fees were actually charged. Everyone who might have come under the revised fee structure in January 2012 will now continue to be able to use their debit-card at no extra charge.

CEO Brian Moynihan had defended the fee as part of a strategy to make up for lost revenue after swipe fees were capped as part of financial reform legislation -- specifically, the Durbin Amendment which curbed the bank's income from card use. A spokesperson declined to say what other new revenue streams the bank might try to tap in the future, saying only that the bank will "continue to initiate actions to mitigate revenue loss."




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voyagerdjc248

This group of thugs cannot go under soon enough. The bank says it does not break out numbers for total accounts closed for the month------ Blatant Lie!

"The bank will continue to initiate actions to mitigate revenue loss". So they learned NOTHING and will do it again and again. Not only thugs, but apparently low intellect too.

November 02 2011 at 1:12 PM Report abuse +1 rate up rate down Reply
pbaczuk

BanK of America, along with Wells Fargo and CitiBank were the three banks guilty of laundering millions for the Mexico Drug Cartels..and never prosecuted! I won't deal with BOA.....they are crooks, and will come up with some other way to nickle and dime it's victims.
As for buying American...what would that be?

November 02 2011 at 12:25 PM Report abuse +1 rate up rate down Reply
nxston08

This no consumer victory. They will only find another way to charge you where you won't notice it. A few pennies here. A few pennies there. Bank have always been thieves.

November 02 2011 at 10:54 AM Report abuse rate up rate down Reply
david85719

B of A paid me $500 to keep my account with them after I threatened to leave! I LOVE THAT BANK!!!

November 02 2011 at 9:54 AM Report abuse -1 rate up rate down Reply
jim

I'm pretty sure the customers who left BOA had something to do with the bank's decision not OWS. I'm sure they will take all the credit though.

November 02 2011 at 9:32 AM Report abuse rate up rate down Reply
DOG BOY

After watchng the OWS and seeng Starbucks making an effort(5ml.) now that's an effort... I'm into the $5. Whenever these silly people(greedy) in the banking industries think tanks, get a great idea, they need to have some real people look at the idea($5 debt card charge). I for one am not putting my money into harms way again.At least not the Devil I know. Doesen't it just burn ya how we can't trust squat..???Aggggg!!!!!

November 02 2011 at 8:44 AM Report abuse rate up rate down Reply
obama fools

PLEASE OWC works wake up ......its the customers who woke up.................

November 02 2011 at 8:18 AM Report abuse rate up rate down Reply
Johnny Magic

People, get a clue! We can take control ourselves by creating American Jobs, simply by buying American made products that are manufactured in the USA! Quit shopping for cheap Chinese crap at WalMart! Support American companies who Design, Engineer, and Market their products here in the USA, and not Japan, Korea, or Germany. They only offer Token assembly jobs here. The good paying jobs remain in Japan, or Korea! Wake up people, support your fellow Americans who need jobs here in the US. We ourselves can get control back. Use cash again instead of Debit/Credit! Don't let the banks own you! Become debt free as much as possible. Tell our Government to stop the War Machine! Save much money! and Live much better! Many companies are getting rich at our expense! Support your fellow Americans at www.madeinusaforever.com, www.madeinusa.org, www.proudamericantradingpost.com

November 02 2011 at 8:06 AM Report abuse +1 rate up rate down Reply
1 reply to Johnny Magic's comment
sfamilyent

Buying a product that is designed, engineered and manufactured in the US does not guarantee that the company will not move facilities to another country in the future.

As for the banks, which is actually related to the article, I don't believe their claim for electronic transaction costs, especially for debit cards. I'm certain the cost of processing paper checks was much higher than what they are now claiming. As their processing costs came down, what did they do with the increase in profits?

November 02 2011 at 3:49 PM Report abuse rate up rate down Reply
nos2001

we dropped bofa long time ago....even before the debit card fee. the reason bank of america should be called the bank of illegals.. they give loans and credit cards to illegals. this is why everyone should do what we did-close your accounts.

November 02 2011 at 7:34 AM Report abuse +1 rate up rate down Reply
sfamilyent

Everything that these major banks, as well as other businesses and corporations, do is about increasing their own bottom line. Nothing they do is in the interest of their customers. They compete for your business, and it is in your best interest to make comparisons between all of the financial institutions and to choose to do business with the one that you think provides you the best value.

Bank of America and other major banks are whining about their lost transaction fee revenues, but they were quick to scoop up LaSalle Bank, Countrywide Financial, and Merrill Lynch in 2007-8; and they were even quicker to accept a $45 billion bailout from the US government. Their timing for acquisitions and expansions coincidentally coincided with the economic collapse.

Bank of America is considered to be the third largest company in the world... and the biggest bank... No one believes that they "listened" to their customers. When people started pulling out their deposits, it affected their balance sheets - and they listened to the money slipping away.

November 02 2011 at 7:27 AM Report abuse +1 rate up rate down Reply