Bank of America Abandons New Debit Card Fee - Products News

ADVERTISING DISCLOSURE

ADVERTISING DISCLOSURE:
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from most 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. Credit-Land.com 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

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 Bloomberg.com. “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.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
Add to Favorites:

Related News:

MasterCard and Fred Segal Open Shop on the Strip

Posted: April 20, 2018

MasterCard and Fred Segal have opened Rock ‘n Roll Holy Land on Sunset Strip, an immersive exhibit giving people an insider’s view of the history of the Sunset Strip. The shop also puts a unique digital spin on window shopping using ... Continue reading
New Amex Centurion Lounge Opening in Denver

Posted: April 19, 2018

Are you a regular at Denver International Airport (DEN)? If so, you may want to check out the new Centurion Lounge when it opens next year. It’s stated to be the eleventh lounge in the Centurion line up. Offering airfield views and taking ... Continue reading
Crate and Barrel and Synchrony Bank to Offer New Credit Cards

Posted: April 18, 2018

Do you shop for furniture and household wares at Crate and Barrel? If so, you might be interested to know that the home furnishings retailer has inked a deal with Synchrony to offer customers not only new credit cards and financing ... Continue reading
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
We'll match all the Miles you've earned at the end of your first year. For example, if you earn 30,000 Miles, you get 60,000 Miles.
For Excellent, Good Credit
Earn 5% cash back at different places each quarter like gas stations, grocery stores, restaurants, Amazon.com, or wholesale clubs up to the quarterly maximum each time you activate.
For Excellent, Good Credit
Our application is quick and easy with instant pre-qualification available
For Fair / Good Credit
You've successfully subscribed!

Please specify the following:All these fields are optional

Your Credit History
Themes you are interested in:

By providing this information you help us make our news letters more useful and informative. Thank you!