Bank Of America Debit Card Fees
November 1, 2011 by staff
The bank’s decision to step down came after a roar of outrage from customers in recent weeks for the price. Other large banks, including JPMorgan Chase & Co. and Wells Fargo & Co., has already canceled similar tests debit card fees last week.
SunTrust Banks and Regions Financial Corp. did the same on Monday.
Anne Pace, a spokeswoman for Bank of America, declined to say whether the company has experienced a surge in account closures since the announcement of the fee and five debit cards in September.
However, in a statement Tuesday, the Bank co-head of U.S. operations David Darnell said the decision was based on customer feedback. “The voices of our customers are most important to us. As a result, we are currently not charging the fee and no further progress with plans to do,” he said.
Pace added that “an ever-changing competitive market,” also played a role.
The change in attitude of the banks comes amid growing public anger over bank charges higher. A move to bank customers switch to credit unions – initiated by a customer of Bank of America – Saturday marked “Day of the transfer.”
An online petition calling for separate Bank of America to cancel the fees of 5 and had gathered more than 306,000 fans this week.
“Consumers have the power to make the big banks down from unfair practices if they raise their voice and vote with their feet and their dollars,” Norma Garcia of Consumers Union, said Tuesday in a statement . In the end, said Bank of America understands that the risk of losing too many customers.
Unlike Chase and Wells Fargo, Bank of America announced it would begin charging customers a monthly fee debit card early next year had come without any test on the market.
Pace said the bank had made the decision based on internal customer surveys. She declined to detail the nature of such surveys, but said that in the last couple of weeks, “has changed the feeling of the customers.”
Withdrawal of the banking industry a debit card fee does not mean that customers are not seeing higher rates elsewhere.
Last spring, for example, Bank of America raised its monthly fee for basic checking account and 12 to, from and 8.95.
The Bank of Charlotte, North Carolina, 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 said the pilot program is to see “good results” and that the bank plans to go ahead with its launch next year.
Other minor charges may be nicking away at customers’ wallets 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. Bank of America is not the only good.
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.
And like many other banks, Wells Fargo ended its debit rewards program earlier this year.
The wave of price hikes comes as the industry adjusts to the new regulations. A rule that took effect last month, tops rates banks can charge merchants when customers spend their debit cards.
Banks in the last year have blamed their rate increases and withdrawal of benefits in a new federal law championed by Senator Dick Durbin of Illinois. The law, which came into force last month, the tops of many banks can charge merchants when customers spend their debit cards.
JPMorgan said to lose $ 300 million each quarter as a result of regulation, Wells Fargo told to lose 250 million per quarter.
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