Dodd-Frank Act Debit Fees

October 28, 2011 by staff 

Dodd-Frank Act Debit FeesDodd-Frank Act Debit Fees, Bank of America announced last month it would begin imposing a new rate of $ 5 for the privilege of using your debit card to make purchases. Buy something once a month, charge and 5 thereof. This was the latest in a series of public relations disasters as the company explores options to maintain their incomes as high as possible in the face of new rules governing their behavior in the bill Dodd-Frank financial regulations adopted by the year past.

B of A-always the industry leader of pissing off customers-was not the only bank to discuss the idea. Wells Fargo began charging $ 3 per month for the purchase of the debit card, Chase announced plans to do the same, and other major banks are reportedly exploring similar programs (not to fall behind its competitors) and Citibank announced a new fee $ 15 per month unless customers keep their checking account and balances over 6000.

The new rates stirs resentment even as Treasury Secretary, Tim Geithner, called “immoral” and backhandedly urged customers to switch their accounts out of Bank of America. And many customers heard. A movement called “National Day Bank Transfer” caused by thousands of customers expected to move their accounts from large banks to small credit unions on 5 November (Guy Fawkes Day, appropriately enough). A Facebook fan page for the day bank transfers over 28,000 fans.

Today, the Wall Street Journal announced that banks are giving in their plans. “JP Morgan joins U.S. Bancorp, Citigroup Inc., PNC Financial Services Group Inc., KeyCorp and other large banks have said in recent days that they will not impose monthly fees for debit cards.” JP Morgan Chase is one of the largest banks with over 26 million checking accounts.

Of course, reports of ‘El Diario’ “, said none of the banks made their decisions because of the protests on the rates of the Bank of America.” However, at the same time, said Stephen Troutner, head of Citigroup’s consumer banking and small businesses, “Our customers, said it would be a huge source of irritation to them. Every time you hear that kind of overwhelming information customers have to listen. ”

And listen, it seems that they did.

But there is a paradox underlying the tensions surrounding the banking sector right now: The banks are too big not-was established in 2008. If you go down, all go down with them. In that sense, a social service debt, and sometimes the system supported by taxpayers. But while publicly traded companies, motivated to maximize profits for their contribution remains healthy. On the one hand, we do not scam us exorbitant fees. On the other hand, we do not want that after heavy losses, because it could endanger their welfare and, by extension, put us in danger. And reports of ‘El Diario’ “banks must lose more and 6 billion in annual revenue as a result of the new rules, according to industry estimates.”

Our interest is literally divided against itself when it comes to finances. It is as if we are to succeed, but not quite.

And perhaps this is a good balance to strike. It was probably the point of all funding rules were developed systematically over the 20th century, when we start thinking they were not needed and forgot that it has instituted in the first place. If nothing else, the current economic crisis should run our memory.

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