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Bank of America: Because it thinks America is its bank. In Britain, there are no debit card fees, and you can use any bank's ATM to take out cash without a charge. In the US, use the wrong machine, and you're hit by your bank and the other bank. And now, Bank of America thinks it should make an extra $5 per month should you use your debit card. Thank goodness we have that banking reform law.
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63 comments
 
fuck that - reVOLt! I remember when ATMs were introduced (gulp) and they boasted how they were 'free' and for your convienience! (in US) .. but slowly they bent us over ...
 
I don't do debit. Credit unless it isn't accepted
 
Have a look at 'how to rob a bank', great film that all starts with those 'draft out money fees'. ;)
 
Take the money out of the bank. It hurt them much more than you think, with fractional reserve banking you will take 100 times more from them than the cash you would hold in your hands.
 
This doesn't effect me much as I use Amex for absolutely everything, unless the merchant doesn't accept it. Then I use a Visa.

That said, these types of fees will hurt millions of Americans.

Thanks, BofA.
 
"In Britain, there are no debit card fees, and you can use any bank's ATM to take out cash without a charge" - that's not true. Many ATMs do charge fees for taking money out using a debit card, though many don't. Some ATMs in the UK charge $2-3 though they tend to be at gas stations and grocery stores. All the major banks offer free cash withdrawals to their own customers, and sometimes others, but not always.
 
+Danny Sullivan , it is banking reform law that is pushing the banks to charge this new fee. The new regulations limit the interchange fees, so the banks are recouping the money from their customers, the debit card users.

PS - Perhaps I misread your post, and the last sentence was meant sarcastically.
bish s
 
This would make me drop BoA, even if I had an account there.
 
suntrust has done it and i'm moving banks before this $5/month charge takes affect in November.
 
Bank of America: Because it thinks America is its bank.

Well said. Our household recently left BoA after many years because of things like this.
 
I wish I could afford to pay off the AAA credit card I have which is administered by BofA. Then I would have no dealings with them at all.
 
I support my local credit union. Forget the big banks!
 
Their site is currently down/very slow. Wonder if they are dealing with feedback from certain internet vigilantes?
 
back in 2008 when it looked like WAMU was going under (they were bought by Chase) I looked into other places to do checking - ING, Fidelity, and USAA all suffice. Good to have options
 
Just checked my credit card statement from my credit union. Fees charged in 2011 = $0. :)
 
I wouldn't mind paying bank fees, if the bank wasn't shit. Unfortunately most are. They seem to think online banking is just another way to sell you more debt and "services", not realising that really great online banking is a reason enough for some people to change bank.
 
Here in Britain there are debit card fees. Like anywhere else - it depends on the bank and the actual card. Which is why I keep switching banks... between card fees, account fees, processing fees, illegal overdraft fees etc.... consumers have been robbed blind. Not to mention payment protection insurance for accounts, esp loans, that has resulted in a big court case seeing thousands of people getting back money they shouldn't have been forced to pay out in the first place. Same for some banks and their accounting fees.
 
I moved from BOA to a credit union last year myself.
 
Look like we will be going back to a CASH society. I would think with all the change to check processing (no needing to sent paper check all over the place) the banks would be saving money. Same thing with debit cards. I would thing it is going to cost every one more to process cash.
 
+Jason Kaneshiro fyi ING has been bought by Charter One. Try AllyBank or a credit union (USAA as you point out is a good one) 
 
I'm firing BOA on Monday. Time to move all my liquid cash to a credit union.

I wish I could move my Mortgage away from them too!
 
I don't understand why people don't use Credit Unions more often.
 
In Brazil we don't have debit card fees, but we pay a monthly tax for banking services around USD 15,00.
 
why should a termination fee be the full amount of a contract it seem to be wrong against all consumers surely a termination fee should be less than the whole contract
 
Wow, 5.00 a MONTH to use your bank card.....REALLY?! Do we know if other banks are following suit?
 
This is what happens when politicians get involved in...well...just about anything. Now all of the people who did the right thing (didn't get in over their head with credit card debt, paid their bills on time, managed their debt properly, etc.) have to pay for all of the irresponsible people. Thanks Obama and co..
 
I especially love this line from the story: The Federal Reserve has determined that this is a "reasonable and proportional" amount, reflecting how much it actually costs banks to process a debit card transaction.

One more reason to hate the fed. I would kick Ben Bernanke in the nuts if he said that in front of me.
 
so will this make credit unions, Google wallet and Isis more popular? How about those people that use PayPal debit card? Anything but a bank going forward.
 
Thank goodness for credit cards, better security against lost/stolen cards and fraudulent charges, and better rewards/loyalty programs. I went with AmEx in 2006 and haven't looked back.
 
The only requirement for free checking at my credit union is direct deposit and a savings account with them. The minimum balance for the savings account? $5.
 
The problem is that not all people are going to drop BoA right away or if at any point. So, They are counting on those people for that reason and thats where they are going to make their money. I think its shitty that we as a country bailed them out with our tax dollars and now they are trying to screw all of us with this crap.



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Fact: Bank of america paid back all TARP funds plus interest. They never needed it in the first place.
 
There are countries where you get some money back if you pay with a debit card. For example I get 1% of all spend from mine.
 
If my bank starts charging I am done with them.
 
The banks paid back the TARP funds with interest, sure. But they did it by using the TARP funds to buy US government bonds, so they used a free loan, to loan back to the US government at interest, then paid some of that interest back and kept the difference. The money which should have been used to kickstart the credit system and ensure payrolls could be paid, was instead used to fleece the taxpayer out of even more money and not to bolster the economy. Yet because there were insufficient safeguards, the banks aren't facing fraud charges. If Washington worked, there would be a post-analysis of what went wrong and laws passed to limit T&C of future bailouts so that it would be easier to file fraud charges. (Of course there will be future bailouts, whether in 1 year or 50).
 
I find it interesting that everyone is up in arms about paying for a service. Banking reform is what caused a lot of these new fees. Swipe fees were taken away from banks, so to make up the funds lost that are used to pay for the maintenance and upkeep of using debit systems banks are imposing fees to get back the lost revenue.

TARP is also thrown around like a dirty word. When some of the top banks didn't want the funds, or need the funds. The government forced it on all the banks so the public wouldn't know which banks were truly needing it. Also didn't the government make something like 4 billion dollars off the Bank of America TARP funds it loaned out?

If you lost money in your day to day pay check you tighten your belt or look at ways to make more money. This to me is the same. Customers also have the ability to move to another bank not doing this kind of fees or choose to use cash.

Just my 2 cents.
 
i find it interesting that you are not. and no one is up in arms about paying for a service; BOA isn't offering anything for the fee, they are charging customers flat out. while not changing a thing. Banking reform is the easy scapegoat here, and you can most certainly link the two. however the real root of the problem is evil; greed is the root of all evil and head cheerleader for America's one, true God, money.
 
+J. Albert Bowden Interesting points. Thanks for sharing.

Do you turn down a raise for the work you are doing, or if someone goes to pay you for services do you say "No Thank You" and take less?

The banks have said this is a direct link to banking reform that has lowered the swipe fees they can collect. You as a customer never paid this, it was in the price of the items you bought, banks got a piece of that money. Now that banking reform has lowered that part of the fee, a fee that paided for all those ATMs you get cash at, that pass for each machine you swipe your card at, that pay for innovation like wireless swiping, or replacement of cards, fees that pay for all the wires that allow you to see instantly what your bank account is, for you to use online services or new mobile apps, to be able to call 24/7 because someone stole your information, or automated fraud text messages and emails, what about the dispute that you need to file because the burger joint double charged your card. All these items are paid for by fees and swipe fees.

If people are ok with not having these services then by all means don't pay the fee, go to a bank that doesn't charge fees, and see what happens when you can't talk to someone at 10:30 at night when you can't pay for dinner due to someone that got you card information and drained your account.
 
And I bet, since this is negative news for them, in the news bank of America is being called "b of a "
 
Guess i am switching banks...Bank Atlantic anyone..TD bank..what should i choose
 
This will likely spread to all the big banks. However, I've never understood the appeal and popularity of debit cards. When I can charge purchases on a cash-back rebate credit card (even before these new fees) why would I want a debit card?
 
In Belgium, we have no fees: your bank's ATM is my ATM. I'm with an internet-only bank that GIVES me 5 eurocent for every transaction I execute, and I can use any ATM. Belgium enacted that law 2 or 3 years ago.

Credit cards are way less popular here; not even every family has one.
 
Danny's comment reference UK banks not charging to gain access to 'your' money is very true. However, this was only after enormous public outcry because the UK banks tried this on with their customers.

The same thing happened when banks, and many other businesses in the UK decided to cut cost by shipping call center services abroad. This generated another public outcry, and slowly the call centers are returning to the UK.

I'm surprised banks in the USA have not looked at the repercussions elsewhere in the world before making this type of decision. It's only going to come back and bite them in the ass.
 
+Stuart Lieberman good idea but i caught a glimpse of a news article that either said other banks were going to follow suit or they already did, so do some research. any bank that doesnt do it stands to gain a competitive edge and u can vote directly for them with ur business
 
+Teddy Rhoads i don't follow what you mean about would i turn down a raise...i can, do and will turn down money for services for friends. *maybe even special clients.
The banks also said that: their ceos deserve their golden parachutes.
The banks also said that they "couldn't" lower pay scales after the fallout, because then they wouldn't be competitive.
The banks also said that they were in debt up to their ears and they couldn't pay their bills.
How many ex-homeowners in the US have said that in recent years? Were they granted any leniency?

As for "swiping fees", and the cost to run those atms....the atms were paid for long ago. swiping fees are entirely unnecessary and are only utilized for making profits.
Virtually all of the services you mentioned can and should be automated in real-time; maybe initial setup would be the only major cost to them. But that cost is one that nearly every business has faced or will face in the digital age. So I'm not buying any of that.

Lets go back to "The banks have said this is a direct link to banking reform that has lowered the swipe fees they can collect."
The reforms were handed down (albeit entirely too lightly and 3 years later) because of the Banks illegal, immoral, unethical and quite frankly, disgusting behavior(s) that led up to the bailout.

That's called the blame game. Friends don't let friends play it.
 
While I understand that our Congressmen put all this in motion ('helping consumers while getting money from big retailers"), I think one way to get even is to write checks for every transaction where you might have used a debit card. Until they start to pass on to us the extra money the government has arranged for them to get in per-swipe fees will end up costing them more as they have to process more and more paper checks.

As to the banks: Go into the bank to get your spending cash. Ask to have your cancelled checks and statements snail-mailed to you. Help them see that every time you do a transaction electronically, it saves them a bundle of money. Of course, eventually they will raise rates on these services as well, but then sign up at a credit union, which generally have not fees for debit card usage.

Oh.. and send a $0.10 (ten CENTS) check to the re-election campaign for your local politician who helped pass this bill based on kickbacks. - oh, sorry - 'donations'- from big box stores.

Oh, and file your taxes.. on paper next year. Help save the US Postal Service.

The extra work will help solve umemployment as well! Everyone wins for just a little bit of your time writing checks:)
 
I think all the big ones will follow. I'm surprised I haven't heard from CHASE yet (my bank). Greed is the only association I make with these banks. Most have been raking in huge profits since the bail out; recovering far faster than other sectors in the current grim economy.
 
Regions has started charing me $10 a month fee because i don't have direct deposits that add up to $1000 in 2-3 transactions. I'm a server, I make cash, my paychecks are usually $0 because of taxes. I am also being charged $4 a month for using my debit card...
 
What part of "vote with your feet" do you not understand? We don't need regulations to deal with this. If it is allowed to function, the free market will nip this in the bud toot sweet.
 
+Andrea Moro Are you sure it's not all banks in Italy too? That would make sense, because I thought it was a European law for our respective countries to implement nationally. Or maybe this majority of banks are already doing it because Italian parliament is preparing their version of the law anyway (I could be wrong, maybe it was an exclusively Belgian legislative initiative.)
 
Okay, all of you people blaming Bank of America for this -- you're barking up the wrong tree. It was Congress that did this to us, not any bank. And EVERY bank will ultimately be forced to do the same thing. Reason has an excellent article here explaining what happened: "You Can't Call It An Unintended Consequence If You Knew It Was Going To Happen" http://reason.com/blog/2011/09/30/new-debit-card-fees-is-it-an-u
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