More Banks Blink, Cancel Debit-Card Fees

Two more banks -- SunTrust and Regions -- have seen the face of consumer outrage and withdrawn from the field of battle, withdrawing fees for customers who make purchases with debit cards.

Wells Fargo and Chase withdrew their fees last week, after witnessing the mass outrage directed at Bank of America, which at last word will still clinging to its $5 monthly fee.

The four banks that have withdrawn the fees operate about 15,000 U.S. branches and account for more than $2.2 trillion in deposits, more than 20% of the industry total, The Wall Street Journal reported.

US Bank, Citigroup, PNC, Key Bank have remained on the sidelines throughout, not advancing a plan to levy charges on debit-card users.

Banks backtrack

"We believe banking is a relationship business and recognize the importance of responding to client preferences," said Brad Dinsmore, Consumer Banking and Private Wealth Management executive at SunTrust. "We've listened to our clients' feedback and will provide the convenience and security of check cards at no additional charge as part of all of our checking accounts."

Clients will not need to take any action to receive their refund - it will automatically take place in the next 30 days, Dinsmore added.

"We are committed to providing an exceptional customer experience and are continually adapting our products and services in response to the needs and preferences of our customers," said John Owen, head of consumer services for Regions Bank. "We have heard from our customers and are responding to their feedback by eliminating the monthly fee for CheckCards."

Customers who previously incurred a CheckCard fee will not need to take any action to receive their refund and it will be credited to their account on Nov. 4.

Bank Transfer Day

Consumer dissatisfaction with Bank of America's $5 monthly debit-card fee has sparked a nationwide movement to urge consumers to move their accounts from large banks to smaller community banks or credit unions.

Kristin Christian, a Los Angeles businesswoman, is credited with organzing "Bank Transfer Day," scheduled for November 5.

Christian launched the movement after getting fed up with her bank. She's moving, and is urging others to join her. In the wake of Bank America's decision to add a fee for using a debit card for purchases, many other consumers appear ready to join her. Others have expressed a wide variety of grievances.