Viewing the Carnage, Big Banks Pass on Debit Card Fees
Bank of America finds itself abandoned on the field of battle
10/28/2011 | By James R. Hood
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ConsumerAffairs.com
| Finance
Like motorists viewing a grisly car wreck, big banks are slamming on the brakes and rethinking any plans they may have had to start charging customers for using debit cards to make purchases.
J.P. Morgan Chase is the latest to say it has decided to take a pass on the fees, according to The Wall Street Journal.
Don't, though, jump to the conclusion that Chase never charges for debit cards. Brad of Denver will set you straight on that.
"I lost my direct deposit when I lost my job. Now I have to make 6 purchases on my debit card to prevent a $6 charge to my bill," he told ConsumerAffairs.com recently.
"'So I have to spend money to prevent you from charging me,' I asked the Chase representative on the phone. She laughed and said, 'They can be small purchases, like a candy bar or a pack of gum,'" Brad said
"So Chase is making me spend money so I don't lose money to Chase," Brad asked. Yes, said Chase. Brad calls this a "slap in the face."
On the sidelines
Chase joins US Bank, Citigroup, PNC, Key Bank and other large banks on the sidelines, watching with quiet fascination as Bank of America is tarred and feathered by customers enraged over its $5 per month debit fee.
Bank of America, meanwhile, may be getting that weak-kneed feeling. It has not yet implemented the fee and now says it hasn't worked out the details and asserts that the new fee won't affect everyone -- sort of a "fee, what fee?" defense.
Wells Fargo, Regions Bank and SunTrust have all been testing various types of fees in selected markets. No one is yet discussing the results publicly.
Where's the money?
The banks say they need to regain billions of dollars in revenue that's been lost because of new restrictions on overdraft charges, credit card fees and interest rates and debit card transaction fees that are charged to merchants.
Free checking is already a thing of the past except for those who have enough money in their account that they couldn't care less about a $15 or $25 monthly fee. Banks still like customers who have lots of money, after all.
The banks may be feeling like Netflix these days. Netflix has been hammered for trying to raise prices to enable it to buy the streaming rights to more movies. Bankers tend to think they provide a valuable service and don't begrudge themselves a hefty fee or two in return.
Michel Ditlove (Fri, 28 Oct 2011 21:14:38 +0000): Here's my question: What valuable service do banks provide these days that a good, solid and well hidden save would not do. And allow us to pay in cash, no more checking accounts and better than a mattress, add a big dog to this and you're in business!
Jacqueline Folwell (Fri, 28 Oct 2011 21:37:02 +0000): The only conveniance is Not carrying cash these days. Not getting mugged for a few bucks. If this Fee upon fee thing continues though I will take my chances with Muggers. At least you can see them coming. At least you can defend yourself.
Wayne Harris (Fri, 28 Oct 2011 22:43:27 +0000): Greedie bunch of pigs. BB&T Chief Exec Kelly King Doubled pay from 09 up to10.1 million , CEO C.Henson doubled pay up to4.4 million, CFO Bible tripled pay up to $3+ million and they want me to pay for my seniors checking account. How about the billions we taxpayers shelled out ( correction: that jerk in the white house shelled out) to save their sorry asses.
David Lyle (Sat, 29 Oct 2011 17:51:11 +0000): It's time for all consumers to "fire" their "too big to fail" banks and destroy their credit cards as well. Credit Unions are far more consumer friendly. So much so that the big banks have attempted to use their high paid, lobbyist lackeys to ram new legislation that would seriously impair the operations of credit unions. A national boycott of these avaricious parasites, such as BOM, Chase, Citi-Group, etc., would be a weapon that these corporate "pigs at the troth" would understand.
Tina Hartley (Sun, 30 Oct 2011 21:48:52 +0000): Back to old days. Don't have the cash. Don't buy it. Don't throw anything away, fix everything. Make a skirt out of a dress, a coat out of a pair of military wool pants. We did it. Why cannot we do it again. It's time to go back to basics. Reunite families for that's where the strength is. Families need to work together, save together and operate together. United we stand, saving we grow. Let's always count our blessings. God bless America.