Bank Of America Debit Card Fees
November 2, 2011 by staff
The rate, announced in late September, was harshly criticized by consumer groups. It also created a backlash from customers who swore they had turned to bank without a cost. The bank, based in Charlotte, North Carolina, announced his change of attitude by issuing a terse press release on its website citing “customer voices” for the change of heart.
“In response to customer feedback and ever-changing competitive market, Bank of America no longer has the intention to use a debit card usage fees,” the statement said.
The decision is a great relief to many in the region. Bank of America is the second largest bank in the St. Louis area, just behind Minneapolis, USA Bank.
At June 30, Bank of America had about 60 branches locally and increased its market share of local deposits to 12.4 percent at the end of June, up 12 percent in mid-2010.
Anne Pace, a spokeswoman for Bank of America, declined to say whether the company has experienced a surge in account closures since announced plans for the share of the debit card.
But threats to dump customers Bank of America should come as no surprise, given the economic crisis, said St. Louis University finance professor Mike Alderson.
Investment Bank of the United States is “reminiscent of what often happens in the airline industry when an airline raises fares,” he said. “Only if competitors will stick with it.”
Despite its weight as the second largest bank, Bank of America is facing mounting pressure to reverse the national competition after reversing the imposition of similar taxes debit card. Last week, JPMorgan Chase & Co. and Wells Fargo & Co. canceled similar tests debit card fees. On Monday, Regions Bank and SunTrust Bank both announced that they would turn back on debit card fees.
Regions Bank, based in Birmingham, Alabama, is the bank’s fourth largest retailer in the area of ??St. Louis. He said the repayment rate and 4 to any customer who paid it. Atlanta-based SunTrust canceled plans to launch a monthly debit card, which has come into force this week.
The rapid change of banks on the basis of customer protests should be seen as a positive sign, said Joe Stieve, president of Capital Advisors Stieve St. Louis and a bankanlyst for a long time.
“As Americans, we must remember the idea that capitalism works,” he said. “The free market is working.”
However, the withdrawal of the banking industry of a debit card fee does not mean that customers can escape the higher rates elsewhere. The industry continues to seek other charges and income after regulators drastically reduced the amount that banks can charge for debit card transactions.
“They have to,” said Alderson. “You can not offer banking services to no cost.”
Last spring, for example, Bank of America raised its monthly fee for basic checking account and 12 to, from and 8.95.
Bank of America is also testing a new menu of checking accounts with monthly fees ranging from and between 6 and 25 and in Arizona, Georgia and Massachusetts.
Pace Bank of America said that the pilot is to see “good results” and that the bank plans to go ahead with its launch next year.
Other charges may be smaller nicking away in the accounts of customers as well. In September, the bank set a quota of five and to replace debit cards with the delivery of fever during the night and is 20. Both services were free. The changes are not desired by consumers are not limited to Bank of America.
Hunting this year also doubled the share of basic current account and 12 for a month. However, the bank says it will end a test in Georgia for a basic checking account that charges a monthly fee and 15.
While many consumers are reluctant to accept higher rates of accounts, an additional fee just for using a debit card became a lightning rod for critics of the bank.
“Banks are the scapegoat for all,” Alderson said.
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