Right Pandora!
There are SMALL!!! community banks and/or credit unions that arent' doing this though!
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this is such BS - I use my debit card for everything. Its MY frigging money and I already had to do direct deposit to avoid their $15 or whatever it is monthly fee.
Looks like I'll be pulling out every damn bit of $ we have and put it into a pre-paid debit card to use for paying bills, gas, groceries, etc.
At the very least I'd like to be asked my name before being screwed - grrrrrrrr.Leave a comment:
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This is yet more example of runaway..."capitalism" screwing the population.Leave a comment:
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This kind of move actually makes sense when you consider that for years the banks (especially Bank of America and Chase) have been trying to cram Direct Deposit down everyone's throat. Although the banks claimed that this was for the customer's benefit and convenience (yeah, right), the truth was that they wanted to make it as difficult as possible for a customer to terminate their relationship with the bank, no matter how pissed off the customer becomes. With a large captive audience of people who receive their paycheck/government benefits via Direct Deposit, the bank is taking a gamble--which will probably pay off--that more people will simply "put up and shut up" than the number of people who will close their account due to the fee. As a result, the bank will make more revenue, while spending less on overhead, due to the fact that they will have fewer customers, so profits will increase.
Personally, I would NEVER use Direct Deposit, nor would I pay a penny for the "privilege" of keeping my money in a bank account, or accessing the money via check or debit/ATM card. I am sure many other people think this way too, and will therefore close their account(s) at whatever banks start charging these fees and move their money to local banks or credit unions.
However, this is a calculated move on the part of the big corporate banks. Instead of being the biggest in terms of number of customers and number of branches, the new strategy is going to be to try and squeeze as much revenue as possible out of a smaller number of customers, consolidate branches, lay off massive numbers of employees, and so on. Whatever attrition occurs as a result of these changes (i.e. customers closing their accounts and changing banks) that will simply be treated as a "restructuring" expense.
Of course, I would have never used B of A in the first place, so hearing about their greed, while good for a few laughs, is otherwise of no significance to me.Leave a comment:
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Since it is difficult for me to carry cash, my CU is out of state, I love my debit card. Costs me nothing to run as a CC. If I were a B of A member, I would dump them. OF COURSE, they are "Too big to fail" so 'Bammy will give them our money anyway. Do I have a bad attitude? Hmmm, let me count the ways,,,,,,,, one vacant house, two vacant house, three........ One business out, two business out............... One lay off, two.................Originally posted by despritfreya View Post
If you are my age, "flash, Duck and cover". 'HubLeave a comment:
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Cash is king. Don't have a debit card so not an issue for me.
Des.Leave a comment:
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So, run your checking balance down to under $5 with your debit card. Depending upon your timing, you account will be billed $5, and since your account is now in the negative, you get a $35 dollar fee for insufficient funds. LOLLeave a comment:
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Bank of America to charge $5 debit fee
Bank of America to charge $5 debit fee
September 29, 2011
NEW YORK (AP) -- Bank of America plans to start charging customers a $5 monthly fee for using their debit card to make purchases. The fee will be rolled out starting early next year.
A number of banks have already either rolled out or are testing such fees. But Bank of America's announcement carries added weight because it is the largest U.S. bank by deposits.
Anne Pace, a Bank of America Corp. spokeswoman, said Thursday that customers will only be charged the fee if they use their debit cards for purchases in any given month. Customers won't be charged if they only use their cards at an ATM.
The fee will apply to basic accounts and will be in addition to any existing monthly service fees. For example, one of the bank's basic accounts charges a $12 monthly fee unless customers meet certain conditions, such as maintaining a minimum average balance of $1,500.
A fee for using debit cards is still a novel concept for many consumers and was unheard of before this year. But there are signs it may soon become an industry norm.
SunTrust, a regional bank based in Atlanta, began charging a $5 debit card fee on its basic checking accounts this summer. Regions Financial, which is based in Birmingham, Ala., plans to start charging a $4 fee next month.
Chase and Wells Fargo are also testing $3 monthly debit card fees in select markets. Neither bank has said when it will make a final decision on whether to roll out the fee more broadly.
The growing prevalence of the debit card fee is alarming for Josh Wood, a 32-year-old financial adviser in Amarillo, Texas.
Wood relies entirely on debit cards to avoid interest charges on a credit card. If his bank, Wells Fargo, began charging a debit card fee, he said he would take his business to a credit union.
If a debit fee became so prevalent that it was unavoidable, Wood said he's not sure how he'd react.
"I might use all cash. Or go back to writing checks," he said.
The debit card fee isn't the only unwelcome change for checking account customers are seeing either. The banking industry has been raising fees and scaling back on rewards programs as they adjust to new regulations that will limit traditional revenue sources.
Starting Oct. 1, a regulation will cap the fees that banks can collect from merchants whenever customers swipe their debit cards. Those fees generated $19 billion in revenue for banks in 2009, according to the Nilson Report, which tracks the payments industry.
There is no similar cap on the fees that banks can collect from merchants when customers use their credit cards, however. That means banks may increasingly encourage customers to reach for their credit cards, reversing a trend toward debit card usage in the past several years.
An increasing reliance on credit cards would be particularly beneficial for Bank of America, which is a major credit card issuer, notes Bart Narter, a banking analyst with Celent, a consulting firm.
"It's become a more profitable business, at least in relation to debit cards," Narter said.
This summer, an Associated Press-GfK poll found that two-thirds of consumers use debit cards more frequently than credit cards. But when asked how they would react if they were charged a $3 monthly debit card fee, 61 percent said they'd find another way to pay.
If the fee were $5, 66 percent said they would also change their payment method.
Bank of America's debit card fee will be rolled out in stages starting with select states in early 2012. The company would not say which states would be affected first.
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