Credit Card News
Advertising Disclosure is an independent, advertising-supported web site. receives compensation from many credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. has not reviewed all available credit card offers in the marketplace.
Credit Card Applications » News » Products » Bank of America Abandons New Debit Card Fee

Bank of America Abandons New Debit Card Fee

Add to Favorites:
Bank of America Abandons New Debit Card Fee

After four weeks of continual outrage expressed by consumers over the Bank of America`s plans to begin charging customers $5 a month to use their debit cards to make purchases come January, B of A recently announced they were dropping the fee.

“We have listened to our customers very closely over the last few weeks and recognize their concern with our proposed debit usage fee,” said David Darnell, co-chief operating officer, as reported by USA Today. “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.”

Bank of America was, in fact, the last bank to give up the debit card fee initiative, following Regions Bank and Sun Trust who both announced their abandonment of the idea on Monday. Wells Fargo, who was set to test out a similar fee in five states, is no longer going ahead with the pilot program. Additionally, USA Today revealed that JPMorgan Chase, who is currently testing out a debit card usage fee in two states, decided not to implement it nationally.

The Bank of America fee inspired many angry consumers to close their accounts and switch to a regional bank or credit union. One woman in Washington D.C. began an online petition against the debit cards fees that solicited signatures from over 300,000 frustrated consumers. Activists even declared November 5 as “Bank Transfer Day” and were encouraging B of A customers to close their accounts and take their money elsewhere.

“For a lot of consumers, this was the last straw,” said Jean Ann Fox, director of financial services for the Washington- based Consumer Federation of America, according to “Banks have been making a lot of changes to accounts, adding fees and raising the minimum balance needed, and consumers were clear that they objected to one more fee.”

While the repeal of the new debit cards fees is indeed a victory for consumers, experts caution that banks will likely find other, less transparent ways to levy fees against their customers, in the effort to make up for the revenue loss by the recent debit card swipe fee caps. Many banks have already increased their fees pertaining to checking accounts and increased monthly balance minimums.

“There are going to be a lot of fits and starts along the way. Some of [the new charges] are going to work and some aren`t,” said Michael Poulos of consulting firm Oliver Wyman to The Wall Street Journal.

Add to Favorites:

Related News:

Talking About Money Equals Happiness

By Dar Dowling, Posted: September 23, 2016

Love and money are the two biggies in life and relationships, and now, according to a new study by TD Bank, couples who talk about money have a higher happiness factor than those that don't. Continue reading
Credit Card Limits Up, Up and Away

By Dar Dowling, Posted: September 22, 2016

Credit card limits had an upswing during the first six months of this year, according to a new study by Experian, with credit card limits in both the subprime and deep subprime credit range equaling $6.4 billion – the largest amount in the ... Continue reading
Students Looking to Sharpen Financial Skills

By Dar Dowling, Posted: September 21, 2016

School days are upon us and financial literacy is on students'minds, according to the U.S. Bank Student and Personal Finance Study. Continue reading
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
Get 0% Intro APR on Balance Transfers and Purchases for 21 months. After that, the APR will be 12.24%-22.24% based upon your creditworthiness.
For Excellent/Good Credit
1% cash back on select purchases, terms apply
For Fair Credit
Guaranteed $500 Unsecured Credit Limit
For Bad Credit