Bank of America To Charge $5 Monthly Fee For Debit Card Usage

[Freeper]

The Straight Story Donating Member (1000+ posts)  Journal Click to send private message to this author Click to view this author's profile Click to add this author to your buddy list Click to add this author to your Ignore list    Thu Sep-29-11 12:47 PM
Original message
Bank of America To Charge $5 Monthly Fee For Debit Card Usage
   
Bank of America To Charge $5 Monthly Fee For Debit Card Usage

Bank of America customers with basic checking accounts will be hit with a $5 monthly fee in order to use a debit card for purchases, Bloomberg News reported Thursday.

Banks and card companies have been aggressively establish and raising fees in recent weeks as banks plan for new rules taking effect Oct. 1 that limit the amount they can charge retailers for each debit card purchase.

JPMorgan Chase and Wells Fargo are currently testing $3 fees for debit cards in select areas, and Citibank recently announced it is raising its fees for checking accounts.

"The economics of offering a debit card have changed with recent regulations, and we've decided to introduce a monthly fee for customers who use their debit cards for purchases," Anne Pace, a spokeswoman for Bank of America, told Bloomberg.

http://www.mercurynews.com/bay-area-news/ci_19003931?so...

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=439x2023237

I bet if that fee was a tax they would be for it.

Horse with no Name Donating Member (1000+ posts)  Journal Click to send private message to this author Click to view this author's profile Click to add this author to your buddy list Click to add this author to your Ignore list    Thu Sep-29-11 12:50 PM
Response to Original message
3. These banksters took our money
   
reinvested it in their own portfolios, gave some of it back, played funny money finances with the rest and PRETENDED to give it back, now, want to charge us more to use OUR own money.

This should be illegal, but it isn't.

And there isn't a ****ing entity out there who will do the bidding of the PEOPLE...only those that will enhance their campaign funds are worthy of that.

Disgusting.

Sounds like what the govt has done with social security.

[BEG]

Thank the "Democratics" for this. Unintended consequences DUmmies.

[Chris_]

Horse with no Name Donating Member (1000+ posts) 
Thu Sep-29-11 12:50 PM
Response to Original message

3. These banksters took our money

Barney Frank and Chris Dodd took your money, but you idiots will vote for them anyway.

[Evil_Conservative]

Wells Fargo is being a douche and charging us $15 a month for debit card use starting in a few weeks. 

All we have to do is change our checking account from basic to the next one up.  Problem solved.  It's annoying, but whatever saves us $15.

[JohnnyReb]

Wells Fargo is being a douche and charging us $15 a month for debit card use starting in a few weeks. 

All we have to do is change our checking account from basic to the next one up.  Problem solved.  It's annoying, but whatever saves us $15.

I just closed out everything I had there, CD's, checking, Mutual funds, safety deposit box....they were charging me $20 a month for a checking account that I wasn't even using. Admittedly, I did write a rather sizeable check on it and it dipped below the $1,000 minimum....and dumbass me wasn't watching and they took over $200 before I noticed (that was when they withdrew the annual box fee and I was checking to make sure they had taken it) I was using a checking account at another bank for my everyday, monthly, other bills, business...oh well it worked out to my advantage after all, I sold all my mutual funds at Wells Fargo a couple of days before the big stock market swan dive...

I started banking with the bank that is now Wells Fargo 41 years ago. It was a small town bank and I knew everyone in there and they knew me. It has gone through many name changes and changes of practices. Each time it changed doing business with them got harder and harder.

I do my major banking with a small town bank down the road. They don't have the frills of the larger banks and it just suits the hell out of me to not be bothered. They don't call every few days wanting to give me a credit/debit card, sell me life insurance, trip insurance and insurance on insurance....and the only mail I get from them is my monthly statement which contains any other info I need to know. 

They do bitch about not being able to do banking like they used to because of all the government red tape required now....and I agree...

Has anyone ever thought of carrying cash? What a novel idea.

 

[Ballygrl]

Here's a list of Banks that will or won't be charging debit fees:

http://m.ibtimes.com/debit-card-fees-bank-charge-full-list-of-banks-with-debit-card-fees-222353.html

Bank of America: Bank of America will charge a $5 monthly fee to any customer without a premium account anytime they make a purchase, including Essentials, eBanking, and Enhanced checking accounts. Customers who do not use their debit cards or those who only use it to make a transaction on an ATM will not be charged. Customers with a link to Merrill Lynch will also not be charged.

Wells Fargo: Wells Fargo Co. will charge a $3 monthly fee for debit and ATM cards in certain states (Georgia, New Mexico, Nevada, Oregon and Washington) beginning Oct. 14.

Chase: Chase will charge a $3 debit card fee to Wisconsin customers beginning in February. No statement has been made about rolling out the plan to other states.

SunTrust Banks: SunTrust Bank will charge $5 monthly debit card fee on Everyday Checking Accounts starting Nov. 10. It had charged new customers the fee since July.

CitiBank: Citigroup Inc. said earlier this month that it would not charge a debit card fee, saying a fee would be a "huge source of irritation" to customers, according to Bloomberg.

TD Bank: TD Bank has no plans to charge a debit card fee.

Capital One Bank: Capital One does not have plans to charge debit card fees.

Regions Financial: Regions Financial, based in Birmingham, Ala., will start charging a $4 fee in October, according to the Washington Post.

HSBC Bank: No charge yet, though Mybanktracker.com says HSBC is still reviewing the impact of charging a debit card fee.

Citizens Bank: No debit card fee in place currently.

[Rebel]

Guess I'll be looking for a new bank. I'm currently with Suntrust.

[FiddyBeowulf]

Can't Obama just sign an executive order forbidding banks from preventing their customers from closing their accounts and choosing a different bank to do business with? That is the problem right? Banks forcing their customers to pay fees because the customers cannot go anywhere else.

[Erasmus]

This fee is going to offset all the losses they're taking on bad mortgages, most of which were made to liberals.  DU should be supporting this fee, but BofA should be out of business, frankly.

[jukin]

Every piece of 2-3000 page legislation that the democrat controlled 111th passed and signed by our community organizing president was designed to screw the lower and middle classes.

[FlaGator]

I bank with a credit union (Vystar). There are no fees for any of the services that I use and all I am asked to do is to keep a minimum of $5.00 in a savings account.

[Karin]

Yep, the community/regional banks and credit unions are the way to go.  No fee for checking or debit card.  Setting up a HELOC with them was a breeze, nice personal service with a good guy.  All my modest accounts are there.   I hate those monster banks and they hate you. 

[SSG Snuggle Bunny]

It's not that hard DUmbasses.

1) Banks have to keep X assets (deposits, fess, etc) to cover Y liabilities (unpaid loan principle, CDs etc).

2) That ratio is dictated by law.

3) The Frank-Dodd law also dictates what fees a bank cannot charge and caps fees they can charge.

4) If the bank falls behind the ratio that in Point 1 as dictated by Point 2 the bank must seek other revenue streams

5) Confiscating the board of director's salaries and assets won't move that ratio so much as one-tenth of 1%

[Chris_]

I noticed some employers are moving to pre-paid Visa debit cards as a way to pay their employees.  I don't know if I would do it myself, but if I was younger I would probably check it out.

[GOBUCKS]

You need to check before dumping your bank. Our bank started debit fees, but we need only maintain a pretty modest balance in all our accounts combined - checking, savings, money market - to avoid any fees.

Many will recall that back in the days before the Reagan Boom changed the world checking fees were universal and far, far higher than anything being proposed by banks today. The number of banks was a small fraction of what we have today, so they had customers over a barrel. You might pay $15 any month when your checking balance fell below $500, or $.05-$.10 per check, or $10 a month regardless of balance, or a combination. And that was in 1970 dollars. You may have scored a toaster oven for opening an account, but it sure wasn't free.

I remember going to the bank to get cash by using a countercheck, because they weren't subject to fees. On a countercheck, you just filled in your account number, the amount, and signed. I guess they've probably been extinct for decades.

[Chris_]

I got the same letter.  It says if you maintain a daily average balance of $500 or more, they won't charge you a fee.

[GOBUCKS]

Horse with no Name Donating Member (1000+ posts)  Thu Sep-29-11 12:50 PM
Response to Original message
3. These banksters took our money
   
Disgusting.

I doubt the banksters took enough from a Texas single-wide to be rolling in beluga and wagyu.

[Doubleplusungood]

I don't do business with either BofA or Wells Fargo because of previous bad experiences. I like small, local banks instead. Far less bureaucratic happy horse shit to deal with or anticipate dealing with.

[Evil_Conservative]

This fee is going to offset all the losses they're taking on bad mortgages, most of which were made to liberals.  DU should be supporting this fee, but BofA should be out of business, frankly.

And I do not want to be held liable for their stupidity.  We were not the ones that signed bad loans, so I do not want to pay for it.  Common sense, but of course the banks will find another way to keep charging us.

[Erasmus]

And I do not want to be held liable for their stupidity.  We were not the ones that signed bad loans, so I do not want to pay for it.  Common sense, but of course the banks will find another way to keep charging us.

Well, if you stay with BofA, they'll charge you.  Technically, BofA should be belly up and your account should have been transferred to the purchaser of BofA's assets and deposits - you know, the free market solution to a string of piss poor business decisions.  But since the federal government decided who the winners and losers were going to be, you have a bank that needs constant infusions of capital to offset the steaming pile of mortgages they bought when they bought Countrywide.

The other factor is keeping interest rates artificially low, which eats into bank profits a bit, putting pressure on them to seek revenues in other ways.

When you tinker with the free market, there are always consequences.  It's like a law of physics.

[Evil_Conservative]

I am not with BoA.  We left them years ago.  We have been banking with Wells Fargo for a long time now.

[Erasmus]

I am not with BoA.  We left them years ago.  We have been banking with Wells Fargo for a long time now.

Good for you.  I'm with BofA, but won't be subject to these specific charges.  I've been considering moving my business but with electronic bill drafting on the mortgage, and having a brokerage, college savings account, regular savings account, and checking with BofA, I'll need about a week off of work just to make the switch!

[Evil_Conservative]

Good for you.  I'm with BofA, but won't be subject to these specific charges.  I've been considering moving my business but with electronic bill drafting on the mortgage, and having a brokerage, college savings account, regular savings account, and checking with BofA, I'll need about a week off of work just to make the switch!

We really do enjoy Wells Fargo.  Even though we are not happy with the fee.  Our letter said $15 a month, but it would be nice if it was only $3.  Still too much for a fee, but at least we do have the option of changing our checking account to some other level where there is no fee.

Wells Fargo has never done us wrong.  We have four accounts with them (including our daugther's savings account), my car loan, and hopefully a home loan in the future.

[Freeper]

It pains me to say this, but the DUmmies are right about one thing, Credit Unions are usually better than traditional banks, we use a local credit union and we never run into problems, extra fees, and so forth.

We switched because Wachovia (now Wells Fargo) made a mistake and deducted the rent check twice, we called them and they said that it would be fixed in 2 business days, well 2 business days came and went and they still hadn't fixed it, so my wife went to her local branch and asked to talk to a manager, and she didn't leave until the manager credited the account with the amount owed, it still took several days to actually fix the account after that. So we closed the account went to the credit union and haven't had a single issue.

[Ballygrl]

You can thank Dodd/Frank for that $5!

http://www.realclearmarkets.com/articles/2011/10/03/thank_dodd-frank_for_your_debit_card_fees_99288.html

Here's a snippet, the rest can be read at the link:

Throwing their weight around at the height of the banking crisis, House Financial Services Chairman Barney Frank of Massachusetts and Sen. Chris Dodd of Connecticut vowed to stick it to banks. They blamed them for the mess to cover up the fact that they forced banks to lend to favored constituencies who could not repay.

The two Democrats pushed through the much-vaunted Wall Street Reform and Consumer Protection Act, which President Obama signed and touted as one of the signature accomplishments of his presidency.

That act, which included a micromanaging amendment on fees, carried a $2.9 billion implementation cost for that alone over five years, according to the Government Accountability Office.