Bank of America Retracts $5 Monthly Debit Card Fee

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Bank of America has changed its mind about charging customers a $5 monthly fee for using their debit cards, a move that angered many a banking customer, not to mention lawmakers, and in part was a catalyst for Bank Transfer Day, a move initiated by Kristen Christian, an L.A. woman, to get people to take their money from the big banks to credit unions. Reuters reports that Bank of America is the last big bank (following JPMorgan Chase, Wells Fargo, and then SunTrust and Regions Financial) to take back their plan to charge the fee, which they'd said they would initiate next year to make up for revenue lost when the U.S. capped fees on debit-card transactions earlier this year via the Dodd-Frank Act.

The debit card fee was just one of the apparent straws breaking the backs of banking customers, 70,298 of whom have said they will move their money to credit unions on November 5, however. One of them writes on the event's Facebook page, "To little, too late. This just means they have thought of another source for the revenue expected in the debit crad [sic] fee fiasco."

Christian, who banks at Bank of America and plans to move her money on the 4th because it's a business account and she has to do it in person, told us in an interview in October,

"I was tired. I was tired of being charged bank fee after bank fee after bank fee. If their site is down, if I call in, I get a 2 dollar charge. That's not my fault. When they decided to react so negatively to the Durbin Amendment, that made me sick.

Another example: I took my mother to a Mother's Day brunch, and she had to pay because the bank decided to freeze my funds. It took nearly three days to give me access again. They said it was frozen for suspicious activity, but they made no attempt to contact me, they just froze my funds. The straw that broke the camel's back was the info that the banks had made donations to the NYPD prior to the police abusing Occupy Wall Street protesters. I believe it was Chase, but regardless, their behaviors are all so similar, it was sickening. The bank was using money they made off me and my funds to give the NYPD money to abuse people I see as my brothers and sisters.

So it started as a small movement -- the initial invite was to 500 people -- and then it started going to the Occupied Facebook walls."

We've reached out to her, as well as Occupy Wall Street, for comment on this latest move.

Update: Christian says, "I think [this] further illustrates my point that the CEOs are completely out of touch with the American public. This movement was never about the fee itself, but the principle behind it."

Kristen Christian, Who Created 'Bank Transfer Day,' the November 5 Bank Boycott, Tells Us Why

Bank of America drops $5 debit card fee plan [Reuters]

[JDoll / @thisisjendoll]

Go to Runnin' Scared for all our latest news coverage.


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9 comments
www.unibulmerchantservices.com
www.unibulmerchantservices.com

The Durbin Amendment mandated a transfer of revenues from the banking to the retail industry and that has always been pretty clear. The amazing thing is that now the industry that was the transfer's recipient is complaining for not receiving enough and are suing the Federal Reserve. If the retailers got all that they wanted, we should ready ourselves for even higher costs of banking and will be getting fewer services. The good thing is that the Federal Reserve is unlikely to lose this lawsuit.

black card services 123
black card services 123

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Tuxtux87
Tuxtux87

ok guys i used to work for bank of america in San Jose Costa Rica , specifically in the credit card department , and i do know what I am writing here. Bank of America is exploiting their employees in San Jose Costa Rica , they are making them work long hours whiteout no rest at all , and paying them very miserable salaries, These people are a bunch of scumbags i HATE them and despise them with all my guts! they are making their employees take an overwhelming amount of calls per day, An average customer service representative takes around 350 calls in a 7 hours day shift!!!!  these sons of bi**ches are burning in hell , they are the worst company here in San Jose Costa Rica to work for!! they are slavering people here!

novenator
novenator

Doesn't mean folks shouldn't still go close their bank accounts at ANY big bank on Saturday though. Remember, remember the 5th of November! Ask for your money IN CASH too, and if they say they can't do it, freak out on them and tell everyone you know about it.

wagFoo
wagFoo

I think they might be a day late and a dollar short, Time to put B of A out of business once and for all. Lets do it.  being-anon.eu.tc

wagFoo
wagFoo

Now that looks like it might jsut work. I mean like totally.

Jay Gould
Jay Gould

We shouldn't lose sight of how this whole thing started.  All these debit fees banks are now rolling back were introduced in response to the fall in bank revenues from debit card transactions that was the consequence of the passing of the Durbin Amendment to the Dodd-Frank bill and the subsequent Federal Reserve ruling to limit debit interchange at $0.22 + 0.05% of the transaction amount. Those of us who were paying attention to what was happening knew that this was coming and warned against it.  Here is one of the things we wrote at the time: http://blog.unibulmerchantserv... What happened was that the government decided that a substantial portion of the banks' revenues would be collected by retailers.  The banks then decided to make up for the shortfall by creating new revenue sources.  Is that surprising?

The bottom line is that the banks will find a way to make up for their lost revenues and their customers (i.e. us) will foot the bill.

Jaredsmith851283
Jaredsmith851283

What kind of crap business does this woman own that she sees the people in OWS as her "brothers and sisters"?

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