$5 Monthly Debit Fee: Would You Ditch Bank of America?
Bank of America introduced a $5 monthly charge for its debit card users last week, citing a cap on fees the banks could charge merchants as the reason. Sen. Dick Durbin (D-IL) sponsored the fee-cap legislation, and now he's telling consumers to leave Bank
Last week, Bank of America announced a $5 monthly charge for its debit card users, and now Sen. Dick Durbin (D-IL) is telling the bank's clients to walk away.
"My word to consumers across America is talk with your feet, look for a debit card that doesn't charge the Bank of America fee," Durbin told the Huffington Post, adding that the revenue from the new fee will likely far outstrip what they'll lose from recent bank fee reforms.
Durbin proposed an amendment last year to cap the amount of money banks can charge merchants who accept debit card swipes. On Saturday, the new cap went into effect, meaning that the most a bank can charge to merchants every time there's a debit card swiped is 24 cents.
Bank of America spokeswoman Anne Pace told the Huffington Post that other banks are testing similar fees and that Regents and SunTrust are also hiking charges. "We were able to pass some of these costs along to merchants, but because of regulatory changes, we are adjusting our pricing to reflect today’s economics," she said.
My Question: If you use Bank of America, will you look for a bank that doesn't charge this fee? If your bank started charging a similar fee, would you look elsewhere?
READ MORE on the Huffington Post: "Bank Of America Debit Card Fee Leads To Legislative Response."
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