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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…

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4 Responses so far.

  1. I’ll be writing about this on smart family finance today. You are right though. They are going to try and find a different way to make up the money. Either in other “hidden fees” or by laying off employees.

    It’s over, but not really. However, no one is going to try and charge fees on debit cards.

    • Jeremy says:

      The smart thing would have been to increase a wide range of fees a by small amount. People threw a fit over a $5 debit card fee, but probably wouldn’t have noticed if their monthly account fee went up $1 or if they had to pay an extra 25 cents to use an ATM.

  2. PKamp3 says:

    Shadenfreude definitely sums up this situation, haha.

    For more, did you see when a local branch was foreclosed upon in Florida?

    http://abcnews.go.com/Business/bank-america-florida-foreclosed-angry-homeowner-bofa/story?id=13775638

    • Jeremy says:

      Ha! I hadn’t seen that. It would be great to see the look on the bank manager’s face when the homeowner showed up with the sheriff and a moving truck.

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