November 1st, 2011
11:54 AM ET

Bank of America dropping planned $5 debit card fee

Bank of America is dropping its planned $5 debit card usage fee after widespread customer complaints.

"In response to customer concerns and the changing competitive marketplace, Bank of America no longer intends to implement a debit usage fee," the company said in a statement. "We have listened to our customers very closely over the last few weeks and recognize their concern with our proposed debit usage fee,” said David Darnell, co-chief operating officer. “Our customers’ voices are most important to us. As a result, we are not currently charging the fee and will not be moving forward with any additional plans to do so."

SunTrust, Regions latest banks to retreat on debit fees

Read CNNMoney.com's original piece on the planned fee here.

READ FULL CNNMONEY.COM STORY
soundoff (221 Responses)
  1. JJH

    There is no such limit of $0.22 by the federal government. The actual wording of the federal legislation is that fees be “reasonable and proportional to the cost incurred by the issuer with respect to the transaction.” This means the banks must disclose what they are being charged, and they cannot go over a certain limit above what they are currently being charged. The banks, however, loved the profit of being able to charge anything they want, well and above what is reasonable, and wanted to charge much more again.

    November 1, 2011 at 1:15 pm | Report abuse |
    • BGC

      To be fair though, the Dodd-Frank bill exempted merchants from paying transaction fees for debit card usage. Banks provide a service and they charge for that service, just like everybody else. The reason these fees came along was because if the banks didn't charge anybody anything, they'd be performing this service for free and would lose money. And now, they are going to lose money because they can't transfer the cost anywhere. Without trying to go down the slippery slop, it's possible that they might offset this cost by laying off workers. I know small community banks have been strangled by this bill already. Dodd-Frank is the true cause. If you want to see banks stop trying to create so many fees, write to your congressman and bring up the issue of the Dodd-Frank bill.

      November 1, 2011 at 4:35 pm | Report abuse |
    • BleedingHeart

      The Durbin Amendment (the provision in Dodd-Frank we are referring to here) DOES NOT harm small banks!!! The amendment only applies to the largest banks; only banks with 10 billion or more in assets. In fact, practically everything in the bill only affects you if you are one of the biggest banks in the country.

      November 1, 2011 at 6:18 pm | Report abuse |
  2. smiley

    Bank Transfer Day is Nov 5th. Leave the big corporate banks and join a Credit Union is are way better, google for location near you. https://www.facebook.com/event.php?eid=281139538577206 I already closed both my Wells Fargo accounts.

    November 1, 2011 at 1:25 pm | Report abuse |
  3. mikie48

    There is no repair for the damage they've done. Hopefully they will be finished very soon.

    November 1, 2011 at 1:27 pm | Report abuse |
  4. saywhat

    Regulations to the extent that they protect a largely unsuspecting public and its welfare shouldn't be resisted under a false label of socialism.

    November 1, 2011 at 1:33 pm | Report abuse |
  5. justathought

    Now, does anyone have ant ideas how we can get the oil companies to make their products a lot more reasonable? And get the jobs back home where they need to be? This country has a lot of potentual if big bussiness wasn't so greedy.

    November 1, 2011 at 1:35 pm | Report abuse |
  6. bigwilliestyles

    Yeah! So I guess they felt the loss of my "tree-fiddy", and changed their minds! Lol South Park.

    November 1, 2011 at 2:41 pm | Report abuse |
  7. bigwilliestyles

    @ justathought: one word: BOYCOTT!

    November 1, 2011 at 2:43 pm | Report abuse |
  8. bigwilliestyles

    Bank of America dropped the fee for one reason only: the potential for greater loss due to costumer outrage accompanied by account closure/transfer. When I closed my account with them earlier this month, the branch manager personally beseeched me for about 20 minutes to try to get me to change my plans; I can safely assume now that there were a significant amount of others doing the same thing independently before, during, and after my action in protest of greed! VIVA LA CONSUMER POWER!! No we don't have to just bend over and take it from the multi nationals! The Boycott is the perfect answer to corporate greed! Use it! Next up: Exxon Mobil!

    November 1, 2011 at 2:54 pm | Report abuse |
    • uwbadger24

      after Exxon Mobil, can it be BP's turn? get back at people responsible for oil spills.

      November 1, 2011 at 9:43 pm | Report abuse |
  9. fernace

    That's right, listen to your customers, snake! I wish they'd listened to me when they were putting overdraft fees on the overdraft fee & kicked me out of the bank when I was crying over how they were scr.ew.ing me over! So far Wells Fargo has had my back, but banks are a service industry that thinks it does us a FAVOR by holding our $$! That is so twisted! We should not have to pay to use our own $!!

    November 1, 2011 at 3:07 pm | Report abuse |
  10. bigwilliestyles

    As an 'added bonus', the 'smartest guy in the room' type that dreamed up this 5.00 fee idea is sweating his azs off about now. Poetic. Lol

    November 1, 2011 at 3:09 pm | Report abuse |
  11. andy

    All I can say is told you so. As discussed here, http://www.savingtoinvest.com/2011/10/bank-of-america-consider-withdrawing-5-debit-card-fee-power-to-the-people-as-free-checking-accounts-return.html , there was little choice once all the big banks decided to ditch the fee.

    November 1, 2011 at 4:03 pm | Report abuse |
  12. Abbie

    Sure they didn't add that fee, but today I went to BOA for a cashier's check and they upped that fee by $3 as of today. So they're still hitting people. Don't be deceived.

    November 1, 2011 at 5:02 pm | Report abuse |
    • Kathy

      That's exactly what I was afraid of.... they're not "dropping" the $5 increase, they're just redirecting it through other channels. Too little too late, BofA.

      November 1, 2011 at 8:37 pm | Report abuse |
  13. Donovan Palmer

    Bank of America should be abolished. Their CEOs and executives should be punished for their greed. Their assets should then be distributing amongst all their customers that they have mistreated for far too long.

    November 1, 2011 at 6:10 pm | Report abuse |
  14. Ry D.

    what did they expect, when people unite against the corporate bosses and stand as one to fight this greed and money hunger, thats what happens.
    the customer always has the power in the power bcuz their making money off of us not off of theirselves. Storing money in the mattress and in safes are going to come back soon if this keeps up!

    November 1, 2011 at 6:34 pm | Report abuse |
  15. Ry D.

    ***the power in this case

    November 1, 2011 at 6:35 pm | Report abuse |
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