Bank of America Cancels Debit Card Fee Plan

Bank of America’s announcement that it would be charging its debit card customers $5 a month to be able to use their cards turned the institution into a pariah among banks. Although other banks had been quietly (or not so quietly) testing out the same policy in a few areas, none managed to draw the ire of customers in the way BofA managed to.

Now, in an attempt to leave behind their image as the poster child of modern financial greed, the company has announced that it will no longer proceed with their plans, dropping the $5 fee as quickly as they plotted it in the first place.

Via Politico, a spokesman for the the company stated, “We have listened to our customers very closely over the last few weeks and recognize their concern with our proposed debit usage fee. 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.”

BofA wasn’t the only bank to crumble under the pressure of frustrated, angry customers. Noting the backlash that they received, Wells Fargo also decided to quietly drop plans to expand their own fee program, which was being tested out in a few markets.

Now, to watch and make sure they don’t simply incorporate their monthly fees into higher charges and penalties on consumer accounts.

Thanks to all the Care2 members who signed the petition and took part in speaking out against Bank of America.

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Photo from crystalbat via flickr

Disclaimer: The views expressed above are solely those of the author and may not reflect those of
Care2, Inc., its employees or advertisers.

Marcillane B.

4:46AM PST on Nov 8, 2011

common sense does exsist!!!

November 8
send a green star

Swadeep R.

2:18AM PST on Nov 8, 2011

They might have started thinking

Nessie K.

5:23PM PST on Nov 7, 2011

I am happy the cancelled the fee, I was stressing about where to put my money when they started charging the fee and how I could get around it.
There is no reason they should be charging us a stupid fee, especially long time customers.

November 7
send a green star

Bill K.

6:01AM PST on Nov 7, 2011

well it's a start.....

Regina P.

8:17PM PST on Nov 6, 2011

They are still greedy & crooked..

November 6
send a green star

Past Member .

2:45PM PST on Nov 6, 2011

They knew they were going to lose soooo much money. They already started charging for most of their types accounts a monthly maintenance fee, I think this just pushed customers over the edge.

Veronica C.

3:55PM PDT on Nov 5, 2011

THAT is how you protest. Hurt 'em in the wallets!

November 5
send a green star

Virginia E.

11:59PM PDT on Nov 4, 2011

bank should not charge when is a competitive world, and now more than ever banks should be more lenient in catering the customers if they want business, ridiculous to charge fees really, money making business in this bad economy.

November 4
send a green star

Mark S.

3:28PM PDT on Nov 4, 2011

(continued)

There was no honest reason why BoA and other banks needed to charge their customers to have access to their own money. And they customers made their dissatisfaction known in the only manner that the banks understood, by leaving the bank and taking their money with them.

3:27PM PDT on Nov 4, 2011

Eric,

The fed stop the banks from charging their outrageous fees for credit card use because that is what they are supposed to do. It costs the banks an average of $0.07 - $0.08 to process a credit card transaction. The banks were charging around $0.44 per credit card transaction/sale to the merchants, who in turn charge the customers, i.e. us.

The feds saw this, rightly, as price gouging the merchants and customers, and limited the amount that credit card processing fees could be to about $0.21. Which is STILL about a 300% profit.
http://articles.latimes.com/2011/sep/30/business/la-fi-lazarus-20110930

What's more, with the proposed, and now defunct, debit card fees, BoA would have been making MORE money than they would have lost by the change in the credit card sales fees.

While banks are able to make a profit, they should be not allowed to make unrestricted profit or gamble with their depositor's money. They are also not entitled to make a "guaranteed profit", i.e. they will make a minimum of so much profit in a year. If they are caught using shady tactics, as so many have done in the last few years, it is reasonable to expect that they will pay for their mistakes, preferably in proportion to the harm their actions have caused.

There was no honest reason why BoA and other banks needed to charge their customers to have access to their own money. And they customers made their dissatisfaction known in the only manner that the banks understood, b