Bank Of America Is Eating Crow

Posted November 2nd, 2011 in News by Jeremy Waller

Less than a month after announcing it’s plans to start charging a fee on its debit cards, Bank of America has announced that it will not be implementing a debit usage fee.

BoA’s COO David Darnell says:

We have listened to our customers very closely over the last few weeks and recognize their concern with our proposed debit usage fee. 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.

Well bravo Bank of America! It looks like at least one of the executives there has a few brain cells left.

Did they seriously not expect an uprising when this fee was announced? Look at the protests on Wall Street. Most people aren’t exactly happy with the mega-banks right now.

Bank of America’s original announcement was like throwing gas on a fire. And BoA got burned. (Oh man, that’s cheesy.)

I think the New York Times says it well:

Consumers have little sympathy for the banks’ loss of revenue. In fact, consumer groups have called for Saturday to be “Bank Transfer Day,” where customers of big banks move their accounts to community banks and credit unions.

“Bank of America’s new debit card fee was the last straw for many consumers who are tired of banks that got bailed out that are now turning around and hiking fees,” Norma Garcia, manager of Consumer Union’s financial services program, said in a statement.

With this plan out the window I wonder what other plans Bank of America has cooking to replace the revenue lost on swipe fees…