Bank of America has declared war--on America

By Catholic Online (NEWS CONSORTIUM)
10/1/2011
Catholic Online (www.catholic.org)

The bank now plans to charge $5 per month for using debit cards.

Bank of America has lost money from a cap on fees that they can charge retailers. Now they're coming after you to make up the difference.

B of A CEO Brian Moynihan, is hoping customers accept the new fees on debit card use.

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LOS ANGELES, CA (Catholic Online) - They've already taken away free checking and imposed a host of new fees. Starting next year, Bank of America plans to charge debit card users $5 per month for using the card. Consumers complain it feels like Bank of America has declared war on them.

Other banks are watching carefully as they look to do the same. In fact, Wells Fargo and Chase are already testing debit card fees.

It's hard not to feel like banks are punishing people for the recent government crackdown on banking practices, most notably by capping a variety of bank fees. However, banking apologists say the banks are simply doing business as they should, doing all they can to earn profits and increase their share price. Debit cards are a service, a service that costs the bank money, so it is fair for banks to charge for that. However, that defense is a tough sell during a recession.

Bank of America is especially looking to make extra money wherever it can. Despite a massive government bailout (provided by the same taxpayers it plans to charge) at the start of the recession, it is still listed as one of the most troubled banks in the U.S.. Hoping to change that, the banking giant is betting that debit card users don't mind or notice the new fees, or that they will actually agree with them.

However, at a time when many Americans are feeling the pinch of the recession, the $60 per year fees will certainly be noticed.

Announcement of the new fees came as new regulations capping card-based transactions come into effect. Until now, banks have charged up to 44 cents per transaction. This has taken a bite out of retailer's profits.

Retailers, who felt they had no negotiating power against the banks appealed to Congress, and Congress capped the fees at 24 cents. That difference is costing the banks billions, and they want to make it up.

In fact, amongst the myriad new fees that some banks are considering is a fee to charge ATM users who print their balance at the machine.

Banks openly admit they are pushing back against Congressional regulation of their practices. What remains to be decided is, how much pushing their customers are going to accept.

� 2011, Catholic Online. Distributed by NEWS CONSORTIUM.

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Keywords: Bank of America, fees, congress

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1 - 10 of 28 Comments

No Way
1 year ago
Jeff, really...chill out.
Mary u
1 year ago
Itis this administration that has declared war, not the banks
Chris
1 year ago
I used to be a fiercely loyal BOA customer until five years ago. They suck in stereo; they are so bad I don't know where to begin. I am not surprised that BOA is the first (publicly ?) to announce the five dollar fee. If you are still a BOA 'customer', host is probably a more appropriate term, prepare for more of the same,
JBandDB
1 year ago
Get a life. It is none of your business, or my business, to use coercion (government) to dictate how much banks may charge merchants to use credit cards or debit cards or any other product. Businesses and individuals are free not to do business with BOA. My wife and I choose not to do business with BOA or any other large international or national bank, for a variety of reasons. Their credit/debit card fees are not anywhere high on the list of those reasons.
Rob
1 year ago
The reason debit card fees are now being charged when they weren't previously is the banks were paying the costs of providing debit cards, supporting them, protecting them from abuse and fraud and producing and distributing them to their customers for free. They were able to do that because they received a small transaction fee from retailers that they used to pay those costs, instead of charging the consumer. Now, because Senator Durbin added his Amendment (Durbin Amendment) into the financial reform bill that was passed last June, and it is now taking effect, those fees have been taken away from the banks and given to retail stores that benefit from the convenience of debit card processing and acceptance. Prior to their bringing debit card service to retailers, their customers had to either use cash, a check or a credit card when they made a purchase. Durbin was lobbied heavily (over $90,000 contributed to his campaign fund last year), so he felt indebted to them and added this amendment to a bill that was rushed through congress in a panic because of the financial meltdown. He was warned that there would be unintended consequences of his amendment, but he went ahead anyway. The Federal Reserve was charged with setting the fee and it was compromised down to half the cut that was originally in the amendment. Even so, the banks are losing money and retailers are getting a freeby of several billions a year. That was sold to congress as a money saver for consumers, but obviously it didn't save you or me anything. As far as I'm concerned the (Durbin) amendment of the Dodd-Frank Bill should be repealed. Then things could perhaps go back the way they were and our free banking services could be free again.
vance
1 year ago
I wish some people would get as irrate over the Obama government robbing and raping your bank account and savings as they are about B of A raising their fees $5. These fees are about the Obama government regulating the Banking Industry.
Jeffrey Caperton
1 year ago
Actually, No Way, you and Tom appear to have the need to "chill out" as you are the ones who appear to lack control. Upon perusing the Thesaurus, you will find that there are far more appropriate ways to express one's frustrations without the use of profanity as the presence of profanity only serves to manifest one's lack of command of the English language. This is a Catholic website, not a redneck tavern.
Stefani Hutchison
1 year ago
When Netflix upped their charges over a million customers quit in outrage. Bank of America is not the only bank out there. If enough of it's customers take their money and go somewhere else, BOA will either fail completely (not a bad thing) or get the message and stop being so greedy. They already got a huge chunk of our money in the bail out. Now they are crossing the line with their fees. The nice thing about this country is that we all have choices. Don't let them get away with this, take your money and run!
Shirley
1 year ago
The government should open up an "Economic Relief Fund" and The Bank of America should use their advertising allocation and donate that to the fund. See article.

http://media.www.alestlelive.com/media/storage/paper351/news/2011/09/13/Opinion/America.Called.She.Said.She.Wants.Her.Money.Back-4000405.shtml
No Way
1 year ago
Jeff, chill out. Tom, you're awesome ! It's not like f bombs are being dropped here all the time...I think it really gave this topic the stiff tone of frustration....I'm definitely furious that this is happening and have closed my BOA account. Viva la Credit Union !!!!

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