Bank of America Hits Debit Card Users With $5 Fee

You can thank government regulation for this. Every time the government tries to help me, it ends up costing me money.

You can thank corporate greed for this. Every time measures are taken to protect the consumer, they find new ways of sticking it to us. Remember, BofA received $Billions in George W. Bush’s TARP program and now they are thanking the US government and its people by gouging us.

Which administration recently imposed new regs on the banking industry? Some of us told you that the banks were going to pass new fees on to us but nooooo, the left wouldn’t listen.

People – quit doing business with this company!

Posted by: Wondering | September 29, 2011, 3:16 pm+++++The rest of them will follow suit soon enough. You can bank on that.

I thought this was one of the financial institutions that was too big to fail. Well, the average American is getting shafted again.

Suntrust sent me a letter about a month ago saying they were imposing the same fee. They’ve lost my business.

It never ceases to amaze me that people will blame the Obama administration for the reactions of major banking corporations to legislation meant to save the public money. Why are you mad at Obama????? Posted by: RohnertPark1 | September 29, 2011, 3:36 pm +++++How exactly are the new Obama regs saving me money?

If you don’t like what Bank of America is doing…….STOP banking with them. Don’t blame anyone other than the bank for doing this. This is nothing more than corporate greed and the same people the GOP are trying to protect, big business. If you are a customer of Bank of America, stop using their debit cards or bank somewhere else, you have that choice. Go to another bank that is not charging $5.00 to use their debit card, simple. STOP USING DEBIT CARDS, use your own cash. The banks are charging members for using their own money and the banks are the ones using the members money to do their business. Take your money out of their banks. That is how we the people can change what and how the banks do business. When people take action the business must take notice or it will go down. See how long they last after enough people leave their bank. Serve notice to the rest that this will happen to them as well, if they decide to start implementing ridiculous charges for their services. There are too many banks and/or credit unions out there to just sit back and take this as if there isn’t some recourse. If nothing is done now the rest of the banks will follow suit and do the same thing, just like the airlines.

You guys keep telling us to stop banking with BofaA. The rest of them are going to raise their rates or already have. What then?

Increased debit card charges are being implemented to offset the reduced use of credit cards that the banks are experiencing. When people start to use debit cards (their own money) instead of credit cards the banks lose money because they don’t receive the interest charges, late fees that come from credit card use. So now, they want to charge increased fees to use your own money to offset the credit card loss. Also, they may want to reduce how often you use the cards to make purchases so that your money remains in the banks longer, so they can keep their revenue balances at a certain level to maintain their solvancy. Simple solution……start withdrawing your own money and pay real cash when making purchases.

I’ve been a BOA customer since 1986. It’s high time I change to a credit union or local bank that doesn’t charge this fee. BOA still makes money every time one of their debit card holders uses their card. This seems counterproductive to me.

Go with local credit unions and smaller regional banks. My sister gets her disability checks deposited with BoA and uses the debit card to pay her bills – now she’ll have even less to work with, or change financial institutions.

Debbie: Corporate greed? The cost of regulations are borne by consumers. When you have a president piling on the regulations, you can expect the cost of doing business to rise (higher costs to consumers).

For those who say bank with the credit union – realize that your money is not insured through the FDIC – it’s insured through the FSLIC, which insures a lower amount of money. So your account isn’t as protected if your credit union goes under (which a number of them did during the banking crisis). This isn’t the Obama administration’s fault – it’s pure corporate greed. Corporate greed led to banks making risky loans; corporate greed led to banks putting together bad investments; and corporate greed is now leading to banks gouging the consumer with these fees. The Obama administration has reined in how high overdraft fees can be, how banks can manage deposits/withdrawals to create overdrafts (as many banks had a tendency to process all withdrawals before midnight starting with the biggest transactions and all deposits after midnight to maximize overdrafts), and how much banks can charge merchants. Now they need to close the circuit and limit how much banks can charge account holders. But the Republicans will never go for that.

This may be the final straw for maintaining a B of A account. They have been adding fees over the last few years and it is no longer prudent to do business with a company that makes record profits and still penalizes it’s customers for the sake of greed and poor customer relations. Leave B of A like they did to their 30,000 employees. They offer nothing to their customers who maintain checking and savings accounts yet they charge enormous interest should you use their credit cards. This is pure greed and unfortunately our government representatives are accepting huge contribution to maintain the present system.

Credit Union accounts are insured up to $250.000.00, just like bank accounts.Different insurance.
The biggest difference with a Credit Union is that you become a stock holder based upon the size of your account. You have a voice. Try that with BOA

Here is how and when the free market should work. Take all your business and money and move it to ANOTHER bank!! Make THEM pay. Let’s see if the “free market” truly works. Let’s put Bank of America out of business!!

@Dan, yep time to move, vote with your money people.

Nice.. We are laying of over 30,000 employee’s and are now going to stick it to the consumer as well. Time to seek banking some where else..

Isn’t it true I can use my card as a credit card instead of a debit card at most locations? Maybe this will help me to avoid the fee that is imposed. I like the debit card feature since it immediately removes the funds from my account at BOA. A couple of places, like Costco for gas or the self check out, only allow me to use the debit feature. I guess I can just have some funds on a gift card from there to avoid the fee. There is no way I am going to pay a greedy bank fifty cents for using my money. They already make money on the funds I have stashed there, but don’t give me any interest on my checking account. I also see that the “premium” customers won’t have to pay the fee. Another case of how the gap between rich and the middle class or poor widens with each breath we take. Whatever happened America?

Im glad I switched from BOA to my Credit Union. They gave me an interest rate of 3.5 on my car loan, 4.1 on my credit card, no checking fee, no debit fee, all my deposits go right into my account and dont get held to clear, so my money is available as soon as it get’s deposited and I only have to keep a minimum of 5 bucks in my savings at all times. I def. like not having to deal with little fees, that end up costing alot more.

Here’s hoping Bank Of America goes under. Bites the big one. Kicks the bucket. Buys the farm. Hate BOA.

If $5 a MONTH is the end of your world, then you have more problems than bank fees.

Posted by: JR | September 29, 2011, 7:30 pm 7:30 pm
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Every penny gas goes up sucks billions from our economy. Now, apply that to $5 by a bank that is making plenty of money.

$5? I say lets be more worried over Big Govt and what they are doing with our money? $530 million to Solyndra (how many bridges is that) with an additional two Green Loans going out today. $18 muffins. The Pentagon admitting there is no way to audit their books. $5 and we are not worried about Big Govt being 70% efficient at best. You want some fat cats? How many do you think live in DC and have been on the public dole forever and who could care less about your tax dollars..just keep them coming. Maybe some of these private CEO’s should be put in charge. Uh?

Crooks…plain and simple!!!

BOA just lost my business. 10 years of loyalty will be gone over $5 a month. bye,bye boa. How long will it be until the ceo gets booted??

All I can say is two words: Credit Unions
Take you money OUT of these banks and put them in your local Credit Union – and “banks” next time your XXX will NOT be saved! I hope you go under.

Shame on these greedy, ruthless, shameless, crooks. As if the bail out money was not enough for them, they have devise other dubious, unethical ways to commit thievery. Thank God, there is a Credit Union right around the corner.

Why haven’t these banks consider cutting down on the enormous bonuses they pay to their fat, lazy CEOs? That is is one sure way to save money.

Why do people stay with BOA? This is just corporate greed at it’s finest. It’s not the $5.00/month that is going to kill them, it’s the principal of the thing !

Everyone who wants to drop everything and open accounts at credit unions…….You all know Credit Unions don’t pay taxes right???? You want to blame banks for charging a fee. Its due to the Frank Dodd act that these banks are having to do this. Yes these big banks got TARP money. And yes they paid it back WITH interest. Some banks were FORCED to take the money. Not by choice. These governmental regulations put a huge roadblock for banks. Banks are not 503c nonprofits. They are a business. You pay for your cable, phone, etc. Why is it inconcievable that you pay small fees to use services? These banks also offer many ways to avoid service fees. Don’t get mad at big banks for trying to work around governmental red tape. But hey go open an account at a small credit union that doesn’t pay taxes. That’s real smart. :O

I’m not sure why some people are defending the banks. The bank does not HAVE to charge the money. They WANT to charge the fee to keep their profits at a certain level or higher. It cannot be a matter of solvency if they are already taking in record busting profits. Why don’t the banks go on a “profit” diet? Most of us have had to go on diets regarding food, gas, electricity, cable, etc. just to make ends meet, and, ECO 101 tells you that “the market will charge what the market will bear.” Stop paying the market price!
BTW, if BOA thinks it is a matter of rating within the industry, then the standards should be changed from profit margin to a consumer loyalty and/or patriotism standard. Time was when a business in operation for 100 years was respected and admired for its customer retention. Guess we’re all expendable, now, and retention is no longer necessary.

Back in the 90′s my bank forced their debit card on me against my wishes, If I wanted an ATM card it had to be a debit card. When I open my bank account it was free because I was over 50. Now that I am retired and on a fixed income they want to chage me a service charge unless I have a min. balance along with a debit card monthly fee. I have banked with Regions bank for many years but That is going to come to a halt very soon! I am shopping for another bank or banking services that are fee free.

Thank you Senator Dodd, Representative Frank, and Senator Durbin. This is a direct response to the Dodd-Frank bill. All of the banks warned Congress that they would do this, but they insisted on passing the over-reaching bill anyways. Say what you will about the banks, but this is 100% Congress’ fault. Every time the Federal Government steps in to solve one problem, they create 5 more problems. Jamie Dimon wrote Senator Durbin a letter explaining that all banks will be doing this, but Durbin, in his stubborn ways, would not listen. Durbin and the rest of Congress know nothing about the way business works. Vote them all out in 2012.

Oh no, not me. I won’t pay that ridiculous fee. I also don’t have to do busines with them anymore. Both my credit cards will be cancelled and my checking and savings accounts closed. I will have to bank elsewhere. $5 won’t kill me, it’s just the principle of it.

bailout money, 30000 lay-offs, billions to investors, bonuses to CEOs.

There are other choices out there. You don’t have to bank with greedy bast**ds The interest they make off our saving is enough to fund their infrastructure. This is just greed.

It’s time to stop blaming the wrong people, time to divest in evil and instead invest in ourselves. (moveyourmoneyproject.org)

Retaliate 12:51 pm —— Are you a paid progressive operative??? —- You use all the idiotic “sound-bites” the progressives want you to use!!! (Read my12:57 post to see why there are fees)!! —- “bailout money”??… They paid it all back plus $4 Billion in interest!! —- “30,000 lay-offs”… don’t you think they should streamline if they were overstaffed? Only good business sense!! —— “billions to investors”???…. that is how Americs’a 401k and mutual funds grow… that is how America works… don’t you like it?? —- “bonuses to CEOs”??? — Yes, almost all corporations pay bonuses… it is usually a part of the basic compensation package… isn’t America great!! —- “banks are greedy bast**ds, the interest they make off our saving is enough to fund their infrastructure”???… Yes, banks must pay overhead costs like all other corporations, duh!!!…. “This is just greed”… No, Mr. Stalin… this is the capitalist structure of a free-market economy that made America great!! —- If you don’t like it there are 300 other countries out there… leave OUR SYSTEM alone!!

BLAME the DEMOCRATS for the new fees!!!!! —— If BOA is charging something they shouldn’t… clients are free to leave…. but don’t expect other banks NOT to follow suit… the HAVE TO with the transaction fee restrictions placed on them by the Democrat’s DODD-FRANK legislation!!! —- They have to earn a certain amount of profit for their stockholders…. if Dodd-Frank affected the bottom line… they have to make it up somewhere!!!

It’s going to cost BoA more to start processing all the checks that we will start writing again.

lol at everyone that thinks $5.00 is no big deal. Dont forget most households can have as many as 3-4 debit cards. My family alone has 4 different accounts. Mine, my wifes, ours, and my teenage son. So lets see that adds up to $20.00 a month or $240 a year. $240 is gas for a family vacation!! Who’s to say next year it wont be $10.00 dollars. So what BoA goes from making 11billion to 7billion. Every should feel the affects of this awful econmy.
There’s no reason to be ticked off, they are in it for the money and just like them we have the choice do what we want with ours. See ya later BoA

Why is Durbin so mad?
The Durbin Amendment goes into effect Saturday. The once-obscure amendment to the Dodd-Frank financial-reform bill limits “interchange fees,” which banks charge to merchants for providing the service that allows stores to accept debit-card payments. The fees were cut by some 80 percent, which makes it less profitable for banks to offer debit-card services. So the banks have done the natural thing and begun to transfer the fee from merchants to their customers, with Bank of America announcing a new $5-per-month fee for debit-card users.
He is the one who wrote and sponsored the amendment that eliminated the high cost of fees banks charged to stores for credit card purchases from their customers. The bank is just trying to make up for that short fall by charging their customers and not the stores. I think Dick Durbin should apologize and repeal that law now. Congress has no business getting into the private sector and changing and making rules and regulations. The private sector has been moving our economy along very well for centuries, till BHO and Congress stuck their noses in the private sector. Every time government sticks its nose in our business it cost every one more money. Tell government to stop and get lost.

Quotes from Ronald Reagan
“The nearest thing to eternal life we will ever see on this earth is a government program.”

“The most terrifying words in the English language are: I’m from the government and I’m here to help.”

“Government’s view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it.”

I’m from South Florida and I switched. I switched to PNC. And if later they want to try the same thing I’ll switch again. I love using my debit card period. I do not keep cash on me, and when I do need some cash for tips and such, I just get cash back added to the purchase I just made. I was fine with BOA, not one problem until this debit fee rolled in. It was fun while it lasted BOA, goodbye.

The changes being made were to help the merchants from getting charged a fee for debit card charges and hopefully help to pass the savings onto the consumer via lower rices. unfortunately, there is no guarantee that will happen.
i have had a credit union for a long time. i also have wells fargo however when they start charging debit card fees, i will close my acct. i don’t know if writing checks is the answer considering with all the check fraud, many places wont take checks anymore. i will start using my credit card and just paying off the balance monthly. Since it is a rewards card, that will be even better.

Be careful the banks are smarter than we are even the smaller ones and the credit unions. Diversify would be the answer so you end up with something when it all crashes . That includes cash at home and some savings bonds