dxing
Topic Author
Posts: 5859
Joined: Wed Nov 12, 2008 5:14 pm

BOA Debit Card Fee To Start Next Year.

Fri Sep 30, 2011 4:28 pm

Thanks to the President, fmr. Senator Chris Dodd, and Rep. Barney Frank, writers of the law, and Senator Dick Durbin, sponsor of the amendment causing this, those of you in the United States that bank with Bank of America can expect to start paying a monthly $5 fee for any use of your debit card outside of an ATM. Other major banks are not far behind. This is a direct result, and of course an unintended consequence of the finacial regulation law passed and signed in January 2010.

http://money.cnn.com/2011/09/29/pf/b...index.htm?section=money_topstories

NEW YORK (CNNMoney) -- Get ready for a new wave of bank fees. Bank of America will begin charging a $5 monthly fee at the beginning of next year for customers who make debit card purchases.

But Senator Dick Durbin (D-Ill.), who introduced the swipe-fee cap in an amendment to the Dodd-Frank financial reform act, said the cap simply evens out the playing field for retailers because the fees Visa and MasterCard had set for banks "grossly exceed the cost of processing a debit card transaction by some 400%."

"After years of raking in excess profits off an unfair and anti-competitive interchange system, Bank of America is trying to find new ways to pad their profits by sticking it to its customers," Durbin said in a statement Thursday. "It's overt, unfair and I hope their customers have the final say."


Well Dick, if all the other banks are following the BOA lead, where do you propose I go?


I really wish those listed above would stop trying to look out for me, everytime they do it ends up costing me more money.
Warm winds blowing, heating blue skies, a road that goes forever, I'm going to Texas!
 
ShyFlyer
Posts: 4698
Joined: Fri Jun 19, 2009 11:38 pm

BOA Debit Card Fee To Start Next Year.

Fri Sep 30, 2011 4:33 pm

Wells Fargo is doing it too in certain markets. I happen to be in one of those markets.  
Quoting dxing (Thread starter):
Well Dick, if all the other banks are following the BOA lead, where do you propose I go?

Absolutely! I've been shopping for a new bank myself. It looks like everyone is jumping on the "fee for every thing" bandwagon. Unless you maintain a sizable minimum balance.
  
I lift things up and put them down.
 
jetblueguy22
Posts: 3315
Joined: Thu Nov 29, 2007 12:26 am

BOA Debit Card Fee To Start Next Year.

Fri Sep 30, 2011 4:36 pm

Looks like im headed elsewhere! Looks like regulation isn't always best for consumers. I always thought they wanted us to use the cards over checks. I may just start using cash more forego the bank.
Blue.

[Edited 2011-09-30 09:53:45]
Look at sweatpants guy. This is a 90 million dollar aircraft, not a Tallahassee strip club
 
D L X
Posts: 12637
Joined: Thu May 27, 1999 3:30 am

BOA Debit Card Fee To Start Next Year.

Fri Sep 30, 2011 5:05 pm

Quoting dxing (Thread starter):
Thanks to the President, fmr. Senator Chris Dodd, and Rep. Barney Frank, writers of the law, and Senator Dick Durbin, sponsor of the amendment causing this
Quoting jetblueguy22 (Reply 2):
Looks like regulation isn't always best for consumers.

Seriously, you two? You need to have a better understanding of cause and effect.

The amendment caps retailer fees, noting that the fee was FORTY TIMES more than it actually cost the banks. Bank of America, throwing a hissy-fit, decides that they still want that FORTY TIMES cost fee, so they're going to extract it out of its patrons directly, instead of out of the retailers -- retailers who can now LOWER THEIR PRICES because of the reduction in fees they have to pay.

But NO! Logic has no business on the internet of course, so you blame Obama. Why don't you blame Bank of America, considering they are the ones that are gouging you?
 
RGElectra80
Posts: 423
Joined: Sat Dec 13, 2008 5:40 pm

BOA Debit Card Fee To Start Next Year.

Fri Sep 30, 2011 5:28 pm

Goodbye, Bank of America. It's been a fun 10 years. Despite what everyone says about you, I have never experienced any issues with your services but this is just ridiculous.

Possible solutions:
-Start banking at a credit union?
-Use a credit card for everything and pay it at the end of the month? I know people that already do this though I don't think I have the personal finance discipline that it requires.
austinspotter.wordpress.com
 
jetblueguy22
Posts: 3315
Joined: Thu Nov 29, 2007 12:26 am

BOA Debit Card Fee To Start Next Year.

Fri Sep 30, 2011 5:30 pm

Quoting D L X (Reply 3):
instead of out of the retailers -- retailers who can now LOWER THEIR PRICES because of the reduction in fees they have to pay.

Right, businesses are going to lower their prices and not enjoy the increase in profits they receive because of the lower fees. Like that is going to happen  
Quoting D L X (Reply 3):
But NO! Logic has no business on the internet of course, so you blame Obama. Why don't you blame Bank of America, considering they are the ones that are gouging you?

Oh yeah I blamed Obama BIG time. Oh wait, I never mentioned the president did I? Maybe not assume next time. I am blaming Bank of America, it was their decision to create the fee. But obviously my cause and effect ain't too far off. You just said how the bill cut fees for stores. Banks are gonna look up for the losses elsewhere, this is one place. So with my stupid, misguided republican logic one could say that it was an indirect cause of this bill.
Blue
Look at sweatpants guy. This is a 90 million dollar aircraft, not a Tallahassee strip club
 
User avatar
casinterest
Posts: 9980
Joined: Sat Feb 12, 2005 5:30 am

BOA Debit Card Fee To Start Next Year.

Fri Sep 30, 2011 5:33 pm

Quoting dxing (Thread starter):
Well Dick, if all the other banks are following the BOA lead, where do you propose I go?


I really wish those listed above would stop trying to look out for me, everytime they do it ends up costing me more money.

Let me see if I understand you correctly.
A law which protects businesses from unfair transaction fees, which lowers their costs . allowing them to hire more people and sell more goods is actually a bad thing because it puts more burdon on the Consumers?


How do you feel about the health care plan again?
Where ever you go, there you are.
 
desertjets
Posts: 7693
Joined: Fri Feb 18, 2000 3:12 pm

BOA Debit Card Fee To Start Next Year.

Fri Sep 30, 2011 5:34 pm

My bank, SunTrust, is doing the same. It isn't anything that is going to break the bank, but it seriously strikes me as a nickle and dimeing me to death type issue.

Quoting RGElectra80 (Reply 4):
Possible solutions:
-Start banking at a credit union?
-Use a credit card for everything and pay it at the end of the month? I know people that already do this though I don't think I have the personal finance discipline that it requires.

That's really the problem, is that for a lot of consumers there is not a choice. For better or worse federal regulators allowed for these mega bank mergers that for all intents and purposes unless you have one of the handful of larger regional banks in your area (SunTrust, Key, Bank of the West, HSBC) you don't have much of a choice other than BofA, Wells Fargo, JPMorgan Chase or Citi. IMHO they should have never been allowed to become "too big to fail".


I think for me when I finally get around to doing it, is I will switch my banking over to a credit union that I am eligible for membership in. But moving bank accounts can be a real pain in the neck, especially given how many things I have set up for auto-payment and the like. So it is no longer as simple as switching banks and maybe changing direct deposit @ work.
Stop drop and roll will not save you in hell. --- seen on a church marque in rural Virginia
 
Mir
Posts: 19491
Joined: Mon Jan 05, 2004 3:55 am

BOA Debit Card Fee To Start Next Year.

Fri Sep 30, 2011 5:41 pm

Quoting dxing (Thread starter):
Well Dick, if all the other banks are following the BOA lead, where do you propose I go?

I'd look to the free market to provide an alternative bank that doesn't charge debit card fees. If one doesn't show up, you'd have to figure that the market really isn't there for it.

Quoting jetblueguy22 (Reply 5):
Right, businesses are going to lower their prices and not enjoy the increase in profits they receive because of the lower fees. Like that is going to happen

Or they can use those increased profits to make further investments in their business and create jobs. Which is ultimately good for everyone.

-Mir
7 billion, one nation, imagination...it's a beautiful day
 
dxing
Topic Author
Posts: 5859
Joined: Wed Nov 12, 2008 5:14 pm

BOA Debit Card Fee To Start Next Year.

Fri Sep 30, 2011 5:42 pm

Quoting D L X (Reply 3):
Seriously, you two? You need to have a better understanding of cause and effect.


Before the financial reform act, no fee, after the financial reform act, fee. I'd say that is cause and effect.

Quoting D L X (Reply 3):
But NO! Logic has no business on the internet of course, so you blame Obama. Why don't you blame Bank of America, considering they are the ones that are gouging you?


The question still remains would they have implemented this policy if not for the financial reform act. The amendment by Durbin was added at the last minute and not subject to any debate.

Remember the omnibus communication act of 1996 that was going to lower our cable rates? What happened?

Remember how we were going to see an instant savings on our health insurance premiums as soon as Obamacare was passed into law? Yet now we are seeing bigger than average health insurance premium hikes, according to the health insurance companies because they have to offset the addition of pre-exisitng condition (low cost medical maintenance) customers as well as up to 26 year old children to their roles.

Whenever the politicians, doesn't matter the stripe, say they are going to do something to help save you a buck or protect you from some egregious fee, you can bet you'll have to shell out a few more dollars for their help.
Warm winds blowing, heating blue skies, a road that goes forever, I'm going to Texas!
 
crazyfoo88
Posts: 44
Joined: Thu Feb 03, 2005 2:24 pm

BOA Debit Card Fee To Start Next Year.

Fri Sep 30, 2011 5:46 pm

I have a question. For people with these chequeing accounts, do you pay another monthly fee or is this making it go from ZERO to 5 dollars? I simply ask because I bank with TD up here in Canada, and my debit account costs 10.95 and that only includes 20 transactions/month outside of the ATM. Are BOA users being charged more for this, or is this just the account finally being forced to be paid for? Just curious as I am trying to understand the backlash appropriately.
crazyfoo88
 
D L X
Posts: 12637
Joined: Thu May 27, 1999 3:30 am

BOA Debit Card Fee To Start Next Year.

Fri Sep 30, 2011 5:52 pm

Quoting jetblueguy22 (Reply 5):
Right, businesses are going to lower their prices and not enjoy the increase in profits they receive because of the lower fees. Like that is going to happen

Yes. That is what competition is.

Quoting jetblueguy22 (Reply 5):
Oh yeah I blamed Obama BIG time. Oh wait, I never mentioned the president did I?

Dxing did. You blamed his regulations.

Quoting jetblueguy22 (Reply 5):
I am blaming Bank of America

Good! And to the extent you're blaming BofA, that comment is not applicable to you.

Quoting dxing (Reply 9):
Before the financial reform act, no fee, after the financial reform act, fee. I'd say that is cause and effect.

Then I'll reiterate that you need a better understanding of cause and effect, because that which I just quoted is extremely myopic. I mean, the exact same thing could be said about the day October 1, 2011. "Before October 1, 2011, no fee, after October 1, 2011, fee. Therefore the fee was caused by October 1, 2011."

Quoting dxing (Reply 9):
Remember the omnibus communication act of 1996 that was going to lower our cable rates? What happened?

Remember how we were going to see an instant savings on our health insurance premiums as soon as Obamacare was passed into law?

And this diversion far away from the debit card fee is how I know that you know you were wrong.
 
dxing
Topic Author
Posts: 5859
Joined: Wed Nov 12, 2008 5:14 pm

BOA Debit Card Fee To Start Next Year.

Fri Sep 30, 2011 6:00 pm

Quoting casinterest (Reply 6):
Let me see if I understand you correctly.
A law which protects businesses from unfair transaction fees, which lowers their costs . allowing them to hire more people and sell more goods is actually a bad thing because it puts more burdon on the Consumers?


How do you feel about the health care plan again?

Define unfair? I know of a number of businesses up until today, that would demand a minimum charge before you could use a debit card to cover that transaction fee. In those instances I reverted to using cash. The merchant was happy, I was happy. Only Dick Durbin was unhappy.

In reality this will actually hurt the lower middle class and upper end of the poor the most. These would be the people that have a checking account to pay their monthly bills, but can't afford to keep a large minimum balance that BOA is going to be looking for to exempt them from the fee. I can afford to take a CD and rather than roll it over, just drop it into the checking account to cover the fee if I wish. So yet another unintended consequence of the law. Not only do the poor and lower middle class get hit, the bank takes a hit for investment money from me not keeping a CD in rollover status. Briliiant move there Senator Durbin. Thanks for your help.

Quoting Mir (Reply 8):
I'd look to the free market to provide an alternative bank that doesn't charge debit card fees. If one doesn't show up, you'd have to figure that the market really isn't there for it.

There is a market for free checked bags, yet people still choose other airlines besides WN for destinations they could get to on WN.

Quoting crazyfoo88 (Reply 10):
I have a question. For people with these chequeing accounts, do you pay another monthly fee or is this making it go from ZERO to 5 dollars?

It adds $5 on top of whatever checking account fee you might be paying now. There are exceptions for accounts carrying a large balance.

Quoting D L X (Reply 11):
Then I'll reiterate that you need a better understanding of cause and effect

Be my guest, you don't want to agree, that's fine. It just means you're wrong again. I must have missed it but I'm sure you can provide the answer...when was the Salahi court date set for?

Quoting D L X (Reply 11):
Therefore the fee was caused by October 1, 2011."

The law goes into effect October 1st. Therefore the law corresponded with the fee increase. You can try and spin all you wish but common sense will always prove you wrong.

Quoting D L X (Reply 11):
And this diversion far away from the debit card fee is how I know that you know you were wrong.

No, it's called an example, but you always call an example that does not co-relate with your mistaken beliefs a "diversion".

[Edited 2011-09-30 11:01:23]

[Edited 2011-09-30 11:15:44]

[Edited 2011-09-30 11:17:06]

[Edited 2011-09-30 11:18:56]
Warm winds blowing, heating blue skies, a road that goes forever, I'm going to Texas!
 
canoecarrier
Posts: 2573
Joined: Sat Feb 14, 2004 1:20 pm

BOA Debit Card Fee To Start Next Year.

Fri Sep 30, 2011 6:17 pm

Quoting desertjets (Reply 7):
I think for me when I finally get around to doing it, is I will switch my banking over to a credit union that I am eligible for membership in. But moving bank accounts can be a real pain in the neck, especially given how many things I have set up for auto-payment and the like. So it is no longer as simple as switching banks and maybe changing direct deposit

Its true that moving bank accounts is a pain, but it's fairly simple and similar to when you have to get a new debit/credit card anyway. If it wasn't for the fact that I almost always get a free trip on AS every year through the miles I get on my BoA debit card I'd be switching to a credit union today.

Another thing I don't like is that use of a debit card lowers the actual workload of a bank. Using an ATM for cash and a debit card at a store is automated at the bank. If I were to write a check to pay for goods and services or withdrawal money from a teller at the bank it takes an actual person to process the transaction. Why aren't those people getting charged $5/month as well?
The beatings will continue until morale improves
 
ShyFlyer
Posts: 4698
Joined: Fri Jun 19, 2009 11:38 pm

BOA Debit Card Fee To Start Next Year.

Fri Sep 30, 2011 7:19 pm

Quoting crazyfoo88 (Reply 10):
For people with these chequeing accounts, do you pay another monthly fee or is this making it go from ZERO to 5 dollars?

For me, I had free checking (I don't get my canceled checks back and have electronic monthly statements). Now there is a fee (I forget the amount) per month unless I maintain a certain minimum balance or have direct deposit of my paycheck (which my employer refuses to offer). Starting tomorrow, Wells Fargo will charge me an additional monthly fee ($3) for using my debit card for any transaction excluding Wells Fargo ATMs.

The fee for the checking account is here to stay. The debit card fee is an trial program and reportedly will be discontinued should debit card activity drop significantly. I won't be using mine anymore (except at ATMs) but I suspect most others will continue to use theirs then just bitch at the bank when they discover the fees, if they pay attention at all.
I lift things up and put them down.
 
Mir
Posts: 19491
Joined: Mon Jan 05, 2004 3:55 am

BOA Debit Card Fee To Start Next Year.

Fri Sep 30, 2011 7:48 pm

Quoting dxing (Reply 12):
There is a market for free checked bags, yet people still choose other airlines besides WN for destinations they could get to on WN.

Clearly they don't put a priority on free bags. If people care that much about not paying $5 a month to use a debit card, they'll find another bank. If no such bank exists and enough people still care that much about it, one will be started.

-Mir
7 billion, one nation, imagination...it's a beautiful day
 
User avatar
seb146
Posts: 21512
Joined: Wed Dec 01, 1999 7:19 am

BOA Debit Card Fee To Start Next Year.

Fri Sep 30, 2011 7:59 pm

Quoting dxing (Reply 9):
Before the financial reform act, no fee, after the financial reform act, fee. I'd say that is cause and effect.
Quoting dxing (Reply 12):
I know of a number of businesses up until today, that would demand a minimum charge before you could use a debit card to cover that transaction fee. In those instances I reverted to using cash.

These two statements contradict each other. I remember there have been fees for a number of years on debit transactions at some places. Under Bush II and even under Clinton. How is that Obama's fault?

I am so sick and effin tired of the free market and private industry doing what it wants to make money and then the right wing blaming Obama. Obama has nothing, zip, zilch, nada, to do with what private corporations do to make money. If Ford wanted to charge $1000 per car as a "convenience fee" there is nothing, zip, zilch, nada, Obama can do about it. Private industry. Yet, the right would blame Obama anyway.

Don't like the fees BofA charges? CHANGE BANKS!!! I hated that they took right-wing alloted money under the "too big to fail" act, so I moved to a smaller, local bank that took zero funds and is solvent. I don't have to worry about transaction fees from these "too big to fail" corporate banks. I blame the corporate banks. Not Bush II, not Clinton, not Obama.

Get over it.
You bet I'm pumped!!! I just had a green tea!!!
 
Type-Rated
Posts: 3901
Joined: Sun Sep 19, 1999 5:18 am

BOA Debit Card Fee To Start Next Year.

Fri Sep 30, 2011 8:18 pm

I think it's just part of the "screw our customers while they still have money" thinking. I'm willing to bet that Chase is the next bank that charges this fee, or it may be even slightly more.

I bank with BBVA Compass and don't pay a monthly service fee, no minimum balance and don't pay for checks and certainly don't pay for my debit card which I use frequently. Another thing about BBVA, they also don't hold out of state checks either. When I was with Chase and I got a check from out of state, they'd hold it for 8-10 business days even though my balance exceeded the amount of the check deposited.

The best thing I ever did was to switch banks.
Fly North Central Airlines..The route of the Northliners!
 
User avatar
casinterest
Posts: 9980
Joined: Sat Feb 12, 2005 5:30 am

BOA Debit Card Fee To Start Next Year.

Fri Sep 30, 2011 8:19 pm

Quoting dxing (Reply 12):
reality this will actually hurt the lower middle class and upper end of the poor the most. These would be the people that have a checking account to pay their monthly bills, but can't afford to keep a large minimum balance that BOA is going to be looking for to exempt them from the fee. I can afford to take a CD and rather than roll it over, just drop it into the checking account to cover the fee if I wish. So yet another unintended consequence of the law. Not only do the poor and lower middle class get hit, the bank takes a hit for investment money from me not keeping a CD in rollover status. Briliiant move there Senator Durbin. Thanks for your help.

I use a credit union, and they just announced that they will increase dividends if you use your debit card more. so it seems to me that BOA customers and other big banks should start loosing regular customers that are smart and savy enough to take advantage of the free market and get another account with another bussiness.
Where ever you go, there you are.
 
User avatar
n229nw
Posts: 2035
Joined: Sat Sep 04, 2004 4:19 pm

BOA Debit Card Fee To Start Next Year.

Fri Sep 30, 2011 8:28 pm

Quoting dxing (Reply 9):
Before the financial reform act, no fee, after the financial reform act, fee. I'd say that is cause and effect.

Ah, now I see why Republicans have such problems with critical thinking and logic. They don't understand the difference between causation and correlation. Time to hit the books!   



PS: Yes, I am joking about generalizing the lack of critical thinking skills to all Republicans!




(It's just most of them...)   
All Glory to the Hypnotoad!
 
Molykote
Posts: 1240
Joined: Tue Aug 23, 2005 8:21 pm

BOA Debit Card Fee To Start Next Year.

Fri Sep 30, 2011 8:33 pm

Quoting D L X (Reply 3):
The amendment caps retailer fees, noting that the fee was FORTY TIMES more than it actually cost the banks. Bank of America, throwing a hissy-fit, decides that they still want that FORTY TIMES cost fee, so they're going to extract it out of its patrons directly, instead of out of the retailers -- retailers who can now LOWER THEIR PRICES because of the reduction in fees they have to pay.

This is a bit like saying that Microsoft pays only $2 to produce a copy of Windows 7. Sure, the cost of producing a DVD and some paperwork might be minimal, but the management and resoruce costs behind the development are very large (as are the costs associated with building and maintaining a bank network). Obviously, the billions(?) of retail bank card transactions per day amortize this cost, but it's disingenuous to represent the true cost of a bank card transaction as $0.01 when a network worth billions of dollars is running and is maintained to support these transactions.

Whether it's baggage fees on an airline or bank fees discussed here, these things add value to the consumer and require some work on the part of the seller. I think both models (baggage fees and credit/ATM card skim) are actually pretty efficient.

Think about it....
Customers and merchants get mutual convenience. Merchants undoubtedly get additional business by accepting cards. In the case of credit cards, consumers often get purchase protection and other benefits (that of course are derived from merchant fees). At the end of the day, I find the credit card "skim" scenario a good all around proposition. It's not clear to me that anyone is losing between the consumer, merchant, and card issuer. In a way, as much as I'm a free market conservative, a bank card gives the consumer security, convenience, and protection against larger entities at minimal or no direct cost. I think some banks even permits a small cash purchase discount from the merchant if a card isn't used (so choice isn't even being restricted in these cases).

The above ATM discussion is a bit academic for me personally as I use an American Express for every purchase possible. No direct fees and nice rewards. Of course, many of the convenience and benefits are shared between debit and credit cards.

Rant over.
Speedtape - The aspirin of aviation!
 
User avatar
kngkyle
Posts: 506
Joined: Wed Dec 27, 2006 3:33 am

BOA Debit Card Fee To Start Next Year.

Fri Sep 30, 2011 8:57 pm

So why not just use a cash back credit card and get paid to do the exact same thing you do with a debit card? Just pay it off in full every month... which you can set up to be done automatically.
 
Ken777
Posts: 9995
Joined: Thu Mar 11, 2004 5:39 am

BOA Debit Card Fee To Start Next Year.

Fri Sep 30, 2011 9:04 pm

Quoting dxing (Thread starter):

Thanks to the President, fmr. Senator Chris Dodd, and Rep. Barney Frank, writers of the law, and Senator Dick Durbin,

All those Nasty Democrats responsible?

But not the wonderful GOP with their incompetent oversight? Or the wonderful execs at BoA who played all the games?

Suck it up. The financial sector needed the taxpayers to bail them out because of their behavior, there needed to be changes to the laws and regulations because of their phuck-ups and now you want to blame it on the Democrats? Bull.

As for BoA - they are getting the use of their customers for free, or a very low interest rate so their cries of needing help with this $5 fee cis crap. Pure, total crap.

Quoting dxing (Thread starter):
This is a direct result, and of course an unintended consequence of the finacial regulation law passed and signed in January 2010.

No. It is a direct result of the games played by the Yo-Yos at BoA and the other banks.

Quoting dxing (Thread starter):
Well Dick, if all the other banks are following the BOA lead, where do you propose I go?

You got a phone? Call the smaller banks in Houston, or where ever you are now. I use small banks and have no doubts that they are all working on how to take away BoA's customers.

Look around a bit. BoA shares down. Customers around the place looking for anew bank. Even some gal on Fox cut her card up on the air.

Say, maybe this is like one of those increases in air fares that is reversed as soon as the top floor gets bitched slapped all over the place, in public and to the benefit of competitors.

Quoting dxing (Thread starter):
I really wish those listed above would stop trying to look out for me, everytime they do it ends up costing me more money.

Don tell me you are a BoA customer!         

Quoting jetblueguy22 (Reply 5):
Right, businesses are going to lower their prices and not enjoy the increase in profits they receive because of the lower fees. Like that is going to happen

Happened at Wal-Mart, didn't it?

Also happens in a lot of competitive markets - like airfares.

Quoting jetblueguy22 (Reply 2):
I may just start using cash more forego the bank.

Try a card that offers cash back, or FF miles. How hard is that? And better than cash.

Quoting dxing (Reply 12):

In reality this will actually hurt the lower middle class and upper end of the poor the most.
Quoting dxing (Reply 12):
Not only do the poor and lower middle class get hit

Wow! You are actually thinking of the middle class? You never did that when the health insurance companies needed protecting. And my bet is that you will vote for politicians who will take care of the big banks, big insurance companies, big oil, etc. All for the middle class? Sure.
 
canoecarrier
Posts: 2573
Joined: Sat Feb 14, 2004 1:20 pm

BOA Debit Card Fee To Start Next Year.

Fri Sep 30, 2011 9:21 pm

Quoting ShyFlyer (Reply 14):
I won't be using mine anymore (except at ATMs) but I suspect most others will continue to use theirs then just bitch at the bank when they discover the fees, if they pay attention at all.

I'm not happy with the $5/month fee, but I'll pay it. The AS miles we get from the use of a BoA debit card compensates for that. In a perfect world I'd open a checking account with the Boeing Employees Credit Union, charge everything on an AS BoA credit card and pay it off every month with my BECU account. Then I get the miles, and I don't have to pay the fee.

Quoting Mir (Reply 15):
If no such bank exists and enough people still care that much about it, one will be started.

There's a ridiculous number of free credit unions around. If the consumer wants to avoid the fee they can.
The beatings will continue until morale improves
 
User avatar
RedTailDTW
Posts: 604
Joined: Tue Oct 24, 2006 12:08 pm

BOA Debit Card Fee To Start Next Year.

Fri Sep 30, 2011 9:25 pm

I recently switched from Bank Of America to USAA and I tell you I am now glad I did!

With USAA I get unlimited free checks, no monthly maintenance fee, no minimum balance, no fee to use overdraft protection (normally 10 bucks at most banks), I can use any ATM in the US and USAA doesn't charge me and refunds up to $15 a month for the fees the other bank charges, I get to scan and deposit my checks on my phone, and they have very good customer service over the phone to boot. The only downside is that they barely have branches but I don't use them much and I get free unlimited deposit by mail slips and envelopes anyway.

So goodbye BofA!


- Mason
Airlines Flown: 9E, AA, B6, CO, DL, G7, HP, MQ, NW, RP, UA, US, WN, YX / Aircraft Flown: 737-200/300/700/800, 757-200/300, 777-200, A319/A320/A321, CRJ-200/900, DC-9-30/50, DC-10-40, ERJ 140/145, E170, MD80/83/90
 
ShyFlyer
Posts: 4698
Joined: Fri Jun 19, 2009 11:38 pm

BOA Debit Card Fee To Start Next Year.

Fri Sep 30, 2011 9:48 pm

Quoting canoecarrier (Reply 23):
There's a ridiculous number of free credit unions around.

There is indeed. However, membership in a Credit Union may not be open to everyone. If you live in a fairly large city, one could find one open to them (I did). If you live in a rural area, perhaps not. My parents live in one such area and while they are members of the only Credit Union in town, it isn't big enough to offer anything other than savings accounts and loans.
I lift things up and put them down.
 
User avatar
LAXintl
Posts: 24068
Joined: Wed May 24, 2000 12:12 pm

BOA Debit Card Fee To Start Next Year.

Fri Sep 30, 2011 10:05 pm

At the end of the day the banks need to make their revenues.

With laws passed which restricted their ability to utilize long standing practices which frankly work well and subjected a small sub-set of clients, now banks have had to alter broader policies which regretfully subject even more folks.

So instead of dinging people well that misused their accounts or did things like have insufficient funds, the banks have had to remove things like free checking, raise minimum deposit amounts, and now impose new set of fees.

The government can regulate away as much as it wants, however at the end of the day commerce must continue and a business will do what it must.
Yes many consumers which previously were able to enjoy free banking relationships must now cost up fees. Thank Washington for such.


One last thing I would like to add however. Like everything in life, there is a choice. No one is forcing anyone to use BofA, Wells Fargo, or any bank. If ones does not like their terms of business, then find alternate choices including sleeping with money under your matres if that is your prerogative.
From the desert to the sea, to all of Southern California
 
User avatar
Tugger
Posts: 9705
Joined: Tue Apr 18, 2006 8:38 am

BOA Debit Card Fee To Start Next Year.

Fri Sep 30, 2011 10:35 pm

Good grief people, just don't get the "branded" debit card and just get the ATM card instead. They issue them for free, grocery stores and so do quite a lot of other stores, and use a normal credit card for the rest and just pay it off each month.

Why would you want use a card that has less protections than a credit card, uses your money rather than its own, and costs you money anyway? I have always refused the branded card and just used an ATM card with credit card.


Quoting dxing (Thread starter):
Thanks to the President, fmr. Senator Chris Dodd, and Rep. Barney Frank, writers of the law, and Senator Dick Durbin, sponsor of the amendment causing this, those of you in the United States that bank with Bank of America can expect to start paying a monthly $5 fee for any use of your debit card outside of an ATM. Other major banks are not far behind. This is a direct result, and of course an unintended consequence of the finacial regulation law passed and signed in January 2010.

First it is not "thanks to" those you mentioned, it is "thanks to" the banks that choose to apply this charge. The people who championed the legislation did not "cause" the fee. Second it is not really and unintended consequence, it is simply a consequence of the law and not one that was unexpected.

Quoting dxing (Reply 9):
Before the financial reform act, no fee, after the financial reform act, fee. I'd say that is cause and effect.

Bad argument, a lot like saying: Before the Bush tax cuts we had started to have a balanced budget, after the Bush tax cuts the budget became a debt magnet.... What? You say there were other reasons for that? (And I think you actually agree with me that the tax cuts should not have happened and that if they are allowed to end, all should end).

Quoting dxing (Reply 9):
Remember how we were going to see an instant savings on our health insurance premiums as soon as Obamacare was passed into law? Yet now we are seeing bigger than average health insurance premium hikes, according to the health insurance companies because they have to offset the addition of pre-exisitng condition (low cost medical maintenance) customers as well as up to 26 year old children to their roles.

Do you believe this or are you just lying? I don't ever remember being told that insurance costs would go down "instantly" (or really at all). And I recall being told that costs would increase to cover the added requirements/benefits, as one would normally expect. Were you expecting something for nothing? That doesn't happen.

Quoting dxing (Reply 9):
Whenever the politicians, doesn't matter the stripe, say they are going to do something to help save you a buck or protect you from some egregious fee, you can bet you'll have to shell out a few more dollars for their help.

Don't forget that business and industry are often involved in writing those laws and regulations. And they do not operate in a vacuum of a magical land where there are not impacts from them. Industry must be involved but its goal will always be to maximize its gain, and what the industry gains comes from the consumer one way or another. There is no way to avoid that. Anyone that does not think that there is and always was a cost to using card services is not a very smart person. The weren't "free" before the legislation, there was a cost.

The simple fact is that branded debit cards do not cost to run/manage as much as the banks have been charging, only before the cost was hidden. Now is is out front where the consumer can see it and make a choice.

Tugg
I don’t know that I am unafraid to be myself, but it is hard to be somebody else. - W. Shatner
Productivity isn’t about getting more things done, rather it’s about getting the right things done, while doing less. - M. Oshin
 
Ken777
Posts: 9995
Joined: Thu Mar 11, 2004 5:39 am

BOA Debit Card Fee To Start Next Year.

Fri Sep 30, 2011 10:36 pm

Quoting LAXintl (Reply 26):
One last thing I would like to add however. Like everything in life, there is a choice. No one is forcing anyone to use BofA, Wells Fargo, or any bank. If ones does not like their terms of business, then find alternate choices including sleeping with money under your matres if that is your prerogative

Bingo!

Simple phone calls can find a better deal than BoA. I use a small bank and a local credit union. Neither needed a bailout during the Bush Great Recession. (To be honest, the bank is related to the Walton family - providing me with far more confidence than BoA can generate.)

As noted above, it is going to be interesting to see if BoA drops that stupid fee when they start loosing customers. Airlines have been known to jack up fees to see what sticks. Banking is far more competitive in most markets.
 
FlyPNS1
Posts: 5483
Joined: Wed Dec 01, 1999 7:12 am

BOA Debit Card Fee To Start Next Year.

Fri Sep 30, 2011 10:45 pm

Quoting dxing (Thread starter):
Well Dick, if all the other banks are following the BOA lead, where do you propose I go?

All the other banks aren't following BOA's lead. There are tons of other small banks and credit unions that don't engage in these practices.

Quoting dxing (Thread starter):
This is a direct result, and of course an unintended consequence of the finacial regulation law passed and signed in January 2010.

No it's not. The banks have been adding fees for years. With debit card activity booming, the banks saw this fee as a new revenue stream. I have a friend who works at Wells Fargo and they've been planning to implement this fee for years.
 
Okie
Posts: 4061
Joined: Wed Jul 16, 2003 11:30 am

BOA Debit Card Fee To Start Next Year.

Fri Sep 30, 2011 11:04 pm

Quoting casinterest (Reply 6):
A law which protects businesses from unfair transaction fees, which lowers their costs . allowing them to hire more people and sell more goods is actually a bad thing because it puts more burdon on the Consumers?


I am trying to get a grip on your economics here. So you are saying that you take more money from the consumer then business will have less business then the business would hire more people?
Please explain.

Quoting LAXintl (Reply 26):
So instead of dinging people well that misused their accounts or did things like have insufficient funds, the banks have had to remove things like free checking, raise minimum deposit amounts, and now impose new set of fees.


That is exactly what the end result is. It is social engineering from central planning.
You have to realize that someone else is going to have to pay for those who have misused/abused the banking system.
It is not any different than the credit card interest rates that charged exorbitant interest rates for those with bad credit and low rates for those who did not. Now everybody get to pay high rates to support the dead beats.

Okie
 
User avatar
Tugger
Posts: 9705
Joined: Tue Apr 18, 2006 8:38 am

BOA Debit Card Fee To Start Next Year.

Fri Sep 30, 2011 11:21 pm

Quoting okie (Reply 30):
I am trying to get a grip on your economics here. So you are saying that you take more money from the consumer then business will have less business then the business would hire more people?
Please explain.

No. The fees were becoming a significant cost to all businesses that accepted them. Often the third highest cost (sometimes second, sometimes fourth). It caused those businesses to cut cost elsewhere, such as employment because there really is/was no option but to accept them or lose the business. And don't take my word for it, talk to the merchants in your area.

Everyone should remember that merchants were hugely behind this legislation. They were a driving force to getting it through. It wasn't just "those bad lawmakers" (and that means Democrats to some here).

Tugg

[Edited 2011-09-30 16:33:47]
I don’t know that I am unafraid to be myself, but it is hard to be somebody else. - W. Shatner
Productivity isn’t about getting more things done, rather it’s about getting the right things done, while doing less. - M. Oshin
 
User avatar
einsteinboricua
Posts: 7865
Joined: Thu Apr 15, 2010 4:11 pm

BOA Debit Card Fee To Start Next Year.

Fri Sep 30, 2011 11:24 pm

I'm a fairly new BoA customer. I'm still on the fence with this new fee and what I'll do with my account afterwards. The benefit of having an airline debit card is very important to me, especially when the credit card I want is not available to me (due to lack of established credit and geographic restrictions). The only card available is the AAdvantage Visa issued by my local bank (with which I also have an account and expect to follow BoA's lead). If I get fed up, then I hope US Bank doesn't apply this fee either.

However, one thing is certain. I still can't believe people...on second thought, I'm not gonna bother. Haters gonna hate, and will NEVER acknowledge fault on their side. Unhappy with the fee? Move to another bank. For people that support a free market, I see a lot of    coming from them.

Besides, EVERY time there's a hissyfit about an increase in air fares or baggage fees or anything else, their response? "Pick another airline".
"You haven't seen a tree until you've seen its shadow from the sky."
 
D L X
Posts: 12637
Joined: Thu May 27, 1999 3:30 am

BOA Debit Card Fee To Start Next Year.

Fri Sep 30, 2011 11:28 pm

Quoting dxing (Reply 12):
The merchant was happy

NO. The Merchant was not happy. That's why the merchant complained to Congress, and that's why Congress acted.

Other people have explained why your causation argument is bunk, so I will not relitigate that argument.

Quoting Molykote (Reply 20):
This is a bit like saying that Microsoft pays only $2 to produce a copy of Windows 7.

Molykote, I do believe this is the straw man of the year!

No, it is not remotely akin to saying that it only costs Microsoft $2 to produce a copy of Windows 7. It shouldn't need explaining, but I will anyway. Each copy of Windows 7 is the whole product, a product that cost millions of dollars to create. Each copy is expensive because it is a share of something expensive. You're not paying for the disc. You're paying for what's on the disc.

A charge with a debit card however, actually REDUCES the costs to the banks. It costs the bank less money to fulfill a debit charge than it does a check or an ATM withdrawal even. (I think. Not 100% sure on the last one, but I am pretty sure I read that somewhere.) It certainly does not cost the bank anywhere near $5, even including the network.

In other words, it is in no way akin to Microsoft only paying a nominal fee for the disc that contains Windows 7, and claiming that is the entire cost.
 
aa757first
Posts: 3140
Joined: Sun Aug 03, 2003 11:40 am

BOA Debit Card Fee To Start Next Year.

Sat Oct 01, 2011 12:41 am

Quoting D L X (Reply 3):
The amendment caps retailer fees, noting that the fee was FORTY TIMES more than it actually cost the banks. Bank of America, throwing a hissy-fit, decides that they still want that FORTY TIMES cost fee, so they're going to extract it out of its patrons directly, instead of out of the retailers -- retailers who can now LOWER THEIR PRICES because of the reduction in fees they have to pay.

Did you really think BoA was simply going to forgo $2 billion in revenue?

Quoting D L X (Reply 3):
But NO! Logic has no business on the internet of course, so you blame Obama. Why don't you blame Bank of America, considering they are the ones that are gouging you?

This is a direct consequence of legislation. BoA was clearly going to recover that revenue somehow and everyone knew it.

Quoting casinterest (Reply 6):
A law which protects businesses from unfair transaction fees, which lowers their costs . allowing them to hire more people and sell more goods is actually a bad thing because it puts more burdon on the Consumers?

Unfair? How was it unfair? If they thought it was unfair, they should have just stopped accepting Visa and MasterCard. Then they would lower their fees to regain clients.

Quoting seb146 (Reply 16):
I am so sick and effin tired of the free market and private industry doing what it wants to make money and then the right wing blaming Obama. Obama has nothing, zip, zilch, nada, to do with what private corporations do to make money. If Ford wanted to charge $1000 per car as a "convenience fee" there is nothing, zip, zilch, nada, Obama can do about it. Private industry. Yet, the right would blame Obama anyway.

Your examples don't line up at all. Of course private businesses can set their prices -- this is still a market based on a capitalist underpinning. But BoA couldn't set their own fees, so now they have to introduce this new fee on consumers to recoup revenue.

I'm not sure if I'll get charged this fee -- I have a student account for the next year. Even if it did cost $5 a month, I'm not sure if I'd switch banks. I've had great service with BoA in the bank and over the phone. I've actually never encountered an unhelpful BoA employee. Plus, I split my time between two states and finding a BoA ATM is always incredibly easy. The international ATM alliance is also quite nice. The only thing I don't like are the ridiculous foreign currency conversion fees.
 
User avatar
LAXintl
Posts: 24068
Joined: Wed May 24, 2000 12:12 pm

BOA Debit Card Fee To Start Next Year.

Sat Oct 01, 2011 1:24 am

Citibank now announces it will charrge a $15/mo fee unless you maintain a minimum of $6,000 in your account.
Previous minimum was $1,500

Citibank is next with a new banking fee
http://www.latimes.com/business/la-f...king-fees-20111001,0,5755568.story

Quoting Ken777 (Reply 28):
As noted above, it is going to be interesting to see if BoA drops that stupid fee when they start loosing customers. Airlines have been known to jack up fees to see what sticks. Banking is far more competitive in most markets.

Let me tell you something honestly having close acquaintance working in banking. (not BofA or Citi)
Post financial reform laws, banks have ended up with too many low worth/low revenue customers.

Its simply costing bank more money to have some as a client then not.

This person told me the institution he is associated with blatantly wants to bleed these customers off the books. If these customers want to maintain their relationships with a bank, they will need to pay for the privilege as banks cant afford to have free accounts and provide services without recouponing revenues in return.
From the desert to the sea, to all of Southern California
 
Ken777
Posts: 9995
Joined: Thu Mar 11, 2004 5:39 am

BOA Debit Card Fee To Start Next Year.

Sat Oct 01, 2011 1:27 am

Quoting okie (Reply 30):
That is exactly what the end result is.
Quoting okie (Reply 30):
It is social engineering from central planning.

A bank management team deciding to take some specific action (like this fee) is also "social engineering" when you get right down to it. So is the banks getting together and deciding on how they are going to overcharge the merchants.

Quoting okie (Reply 30):
You have to realize that someone else is going to have to pay for those who have misused/abused the banking system.

Abuse and misuse of the banking system has been by management at the banks. They played the games, they got caught and then they got bailed out. They have no argument on how hard done they have been.

Quoting okie (Reply 30):
Now everybody get to pay high rates to support the dead beats.

The real deadbeats are the bums in the financial sector who played all of the games that caused the financial crisis. They pulled in their millions instead of jail time - and are now shafting the consumers.

Quoting aa757first (Reply 34):
This is a direct consequence of legislation.

It's a direct consequence of the financial crisis caused by those in the financial sector. They brought on reform legislation themselves and I have zero sympathy for them.

Quoting aa757first (Reply 34):
But BoA couldn't set their own fees, so now they have to introduce this new fee on consumers to recoup revenue.

Don't cry for BoA - they aren't suffering in their consumer banking divisions. And you can be sure that their executives will continue to get their big bonuses for 2011 - regardless of how short a time this stupid fee continues.
 
ltbewr
Posts: 14574
Joined: Thu Jan 29, 2004 1:24 pm

BOA Debit Card Fee To Start Next Year.

Sat Oct 01, 2011 1:39 am

Not just changes in law is part of trigger of this and other fees on checking accounts. Until a few years ago, the bank could make some money to offset the costs to subsidise the account by the interest they could earn on the 'float'. Now interest rates on overnight deposits between banks is maybe 2/10 of 1% APR vs. 3-4% APR before. On a $1000 average balance, that means getting $2/year vs. $30-40 to offset part of the costs of the accounts.

I would assume that this fee is targeting those with smaller balances in their accounts at BoA, those with large accounts will get waivers of it.

The reality is that we are going back to the time when you paid the equivalent of $5-15/month for a checking account. No more 'free' accounts for the majority at commercial banks. Too many banks are so screwed with dead mortgages people are not paying on, they can't sell the homes they foreclosed on to recover most of their losses, they still need to be in business, paying dividends to shareholders or they will go bust.

There are - for now - alternatives from local banks, credit unions, etc. that have no or low fee accounts with few strings, and enough branches to take care of your local and basic needs.
 
PPVRA
Posts: 8277
Joined: Fri Nov 12, 2004 7:48 am

BOA Debit Card Fee To Start Next Year.

Sat Oct 01, 2011 1:45 am

Quoting D L X (Reply 3):
The amendment caps retailer fees, noting that the fee was FORTY TIMES more than it actually cost the banks. Bank of America, throwing a hissy-fit, decides that they still want that FORTY TIMES cost fee, so they're going to extract it out of its patrons directly, instead of out of the retailers -- retailers who can now LOWER THEIR PRICES because of the reduction in fees they have to pay.

But NO! Logic has no business on the internet of course, so you blame Obama. Why don't you blame Bank of America, considering they are the ones that are gouging you?

They charge what they think their service is worth, not what it costs. This shouldn't be news to anyone.

And they have every right to charge 40 times, 80 times, or 100000000 times or whatever they wish. The people who passed this law, on the other hand, should go to jail.
"If goods do not cross borders, soldiers will" - Frederic Bastiat
 
User avatar
einsteinboricua
Posts: 7865
Joined: Thu Apr 15, 2010 4:11 pm

BOA Debit Card Fee To Start Next Year.

Sat Oct 01, 2011 1:46 am

BTW, to the original poster...you might want to thoroughly read the news and compare it with the title of this post. The fee begins on January, not this weekend.

Quoting aa757first (Reply 34):
This is a direct consequence of legislation. BoA was clearly going to recover that revenue somehow and everyone knew it.

Why not recover it through other means? When the competition is not charging a fee or it is charging a fee (not higher than $3 IIRC in the case of SunTrust), why not increase the monthly maintenance of some accounts? Why not increase ATM fees?

If you notice, only those that have a LOT of money will not feel the pinch. In fact, they will be exempt. The pinch will be felt by those that have "basic accounts". So, from a customer to the bank, farewell free checking and, depending on how this develops, good bye Bank of America.

http://www.washingtonpost.com/busine...s/2011/09/30/gIQAspPIBL_video.html
"You haven't seen a tree until you've seen its shadow from the sky."
 
aa757first
Posts: 3140
Joined: Sun Aug 03, 2003 11:40 am

BOA Debit Card Fee To Start Next Year.

Sat Oct 01, 2011 1:49 am

Quoting Ken777 (Reply 36):
Don't cry for BoA - they aren't suffering in their consumer banking divisions. And you can be sure that their executives will continue to get their big bonuses for 2011 - regardless of how short a time this stupid fee continues.

I'm not crying for them, but it is a shame people are now going to be paying $60 a year for a service that used to be free to them.

Quoting ltbewr (Reply 37):
There are - for now - alternatives from local banks, credit unions, etc. that have no or low fee accounts with few strings, and enough branches to take care of your local and basic needs.

I used to use a local bank, but with them its so easy to pay out-of-network ATM fees. Using an out-of-network ATM even just once or twice a month ($3-$5 each) can easily negate the lower account fees.
 
PPVRA
Posts: 8277
Joined: Fri Nov 12, 2004 7:48 am

BOA Debit Card Fee To Start Next Year.

Sat Oct 01, 2011 1:52 am

Quoting aa757first (Reply 40):
Quoting ltbewr (Reply 37):
There are - for now - alternatives from local banks, credit unions, etc. that have no or low fee accounts with few strings, and enough branches to take care of your local and basic needs.

I used to use a local bank, but with them its so easy to pay out-of-network ATM fees. Using an out-of-network ATM even just once or twice a month ($3-$5 each) can easily negate the lower account fees.

Precisely. There is no free lunch, you pay in one way or another--going with a smaller bank will cost you terms of service, convenience, ATM fees, ATM availability, etc, etc.
"If goods do not cross borders, soldiers will" - Frederic Bastiat
 
san747
Posts: 4360
Joined: Sun Dec 19, 2004 10:03 am

BOA Debit Card Fee To Start Next Year.

Sat Oct 01, 2011 3:25 am

Quoting RedTailDTW (Reply 24):

With USAA I get unlimited free checks, no monthly maintenance fee, no minimum balance, no fee to use overdraft protection (normally 10 bucks at most banks), I can use any ATM in the US and USAA doesn't charge me and refunds up to $15 a month for the fees the other bank charges, I get to scan and deposit my checks on my phone, and they have very good customer service over the phone to boot. The only downside is that they barely have branches but I don't use them much and I get free unlimited deposit by mail slips and envelopes anyway.

So goodbye BofA!

   USAA is an awesome bank, and using direct deposit and the check deposit app on my phone removes all need I have for visiting a physical branch. The ATM refunds are handy too, though I probably use an ATM less than once a month, so it's not as huge a deal to me as I'm sure it is to others.

Quoting PPVRA (Reply 41):


Precisely. There is no free lunch, you pay in one way or another--going with a smaller bank will cost you terms of service, convenience, ATM fees, ATM availability, etc, etc.

There are a lot of people who don't need a physical branch to visit to conduct business, and if you don't use ATMs a lot (I hate carrying cash except when absolutely necessary), you can easily have the "free lunch."

Since moving from Wells Fargo, I am saving almost $200 per year on fees alone, and considering my closest WF branch is almost 10 miles away, not having to drive there several times a month has probably saved me at least $150 a year in gas (assuming ~$4 gas).
Scotty doesn't know...
 
jcs17
Posts: 7376
Joined: Mon Jun 18, 2001 11:13 am

BOA Debit Card Fee To Start Next Year.

Sat Oct 01, 2011 3:31 am

The Democrat Party, the leader of "unintended" consequences (see: Obamacare).

Not a big deal, although I will be closing my Bank of America accounts tomorrow.

My salary goes to my SunTrust bank account. I signed up for SunTrust while I lived in DC after their tie up with DL. Since SunTrust doesn't have any offices in New York. I simply used BoA for convenience like if I needed a large amount of cash, or received a check. They're really terrible in terms of customer service, so I'm looking forward to getting rid of them.

I think I might try Citibank, although they don't have a nationwide network, as Chase is even worse than BoA.

[Edited 2011-09-30 20:40:05]
America's chickens are coming home to rooooost!
 
Pyrex
Posts: 4732
Joined: Thu Aug 25, 2005 7:24 am

BOA Debit Card Fee To Start Next Year.

Sat Oct 01, 2011 4:42 am

Ah, the wonders of unintended consequences. Funny thing is, the Durbin amendment just capped the interchange fees for the large banks (so concerned he was with the merchants well being he did a law clearly with the sole purpose of targeting the larger banks). So now a merchant will have to pay a different fee for accepting a BofA debit card than he will pay for a North Assway Credit Union debit card. How long before we see signs saying "minimum bank asset size for debit cards: $10 billion" above the cash register?

Quoting casinterest (Reply 18):
big banks should start loosing regular customers that are smart and savy enough to take advantage of the free market and get another account with another bussiness.

How can you claim there is a free market in banking when credit unions are allowed to function exactly as a bank does, but with no taxes and lower capital requirements, as well as being allowed to charge more fees?
Read this very carefully, I shall write this only once!
 
san747
Posts: 4360
Joined: Sun Dec 19, 2004 10:03 am

BOA Debit Card Fee To Start Next Year.

Sat Oct 01, 2011 5:05 am

Quoting Pyrex (Reply 44):

How can you claim there is a free market in banking when credit unions are allowed to function exactly as a bank does, but with no taxes and lower capital requirements, as well as being allowed to charge more fees?

Good point. If there was a free market in banking, BofA and the other banks that got bailed out wouldn't be around anymore.
Scotty doesn't know...
 
blueflyer
Posts: 4206
Joined: Tue Jan 31, 2006 4:17 am

BOA Debit Card Fee To Start Next Year.

Sat Oct 01, 2011 10:40 am

Quoting dxing (Reply 12):
In reality this will actually hurt the lower middle class and upper end of the poor the most.

Not even close, they actually come out ahead.

Why? Because the new charge is not just in reaction to losing revenue on card processing fees, but also to make up for a massive drop in revenue from overdraft and NSF fees since we were all required to opt-in in order to keep this "service." As per the banks' own admission, the very people you claim will be hurt the most were paying at least one NSF fee per month (at $29+ a pop) for their "free" checking account.

Bad news for the banks: the vast majority of customers didn't opt in. Even after this $5 fee, the poor still save at least $24 a month.

Quoting ShyFlyer (Reply 25):
If you live in a rural area, perhaps not.

There are two credit unions not far from my house where the membership requirement is to live or work in the county. How hard is it to join a credit union nowadays? If there's one within driving distance, you can most likely join.
All Hail King Donald
 
dxing
Topic Author
Posts: 5859
Joined: Wed Nov 12, 2008 5:14 pm

BOA Debit Card Fee To Start Next Year.

Sat Oct 01, 2011 1:07 pm

Quoting Mir (Reply 15):
If no such bank exists and enough people still care that much about it, one will be started.


Doubtful given the glut of banks in this country.

Quoting seb146 (Reply 16):
These two statements contradict each other. I remember there have been fees for a number of years on debit transactions at some places. Under Bush II and even under Clinton. How is that Obama's fault?


I don't see how. Prior to this law if you used an out of network ATM you would be hit for a fee, but just using the debit card itself incurred no fee. Now just using the debit card for anything, once, incurs the fee.

Quoting seb146 (Reply 16):
Don't like the fees BofA charges? CHANGE BANKS!!!


To what? They are all jumping on the bandwagon.

Quoting casinterest (Reply 18):
I use a credit union,


How many low income people have access to a credit unions limited ATM network?

Quoting Kngkyle (Reply 21):
So why not just use a cash back credit card and get paid to do the exact same thing you do with a debit card? Just pay it off in full every month... which you can set up to be done automatically.


Unfortunately, a lot of people have a problem with credit cards, that has been severely detailed over the past 4 years.

Quoting Ken777 (Reply 22):
Suck it up. The financial sector needed the taxpayers to bail them out because of their behavior, there needed to be changes to the laws and regulations because of their phuck-ups and now you want to blame it on the Democrats? Bull.


This amendment, thrown in at the last minute, with no debate and no review does nothing to "reform" the financial industry and only hurts the end user.

Quoting Ken777 (Reply 22):
Call the smaller banks in Houston, or where ever you are now. I use small banks and have no doubts that they are all working on how to take away BoA's customers.


First time you are away from home and use your debit card, there goes your savings. Some of us travel a lot.

Quoting Ken777 (Reply 22):
Don tell me you are a BoA customer!


Nope. Not anymore.

Quoting Ken777 (Reply 22):
Wow! You are actually thinking of the middle class? You never did that when the health insurance companies needed protecting


Sure did. Tort reform and honest cost control would help the middle class, unlike Obamacare which as we see now is actually fueling larger than average health insurance premium increases.

Quoting ltbewr (Reply 37):
Not just changes in law


Good post.

Quoting einsteinboricua (Reply 39):
BTW, to the original poster...you might want to thoroughly read the news and compare it with the title of this post. The fee begins on January, not this weekend.


You are correct. I mixed the announcement with the start date.

Quoting einsteinboricua (Reply 39):
Why not increase ATM fees?


They already have in some areas.

http://abcnews.go.com/Business/banks...lame-regulations/story?id=13149793

and Sen. Harkins attempt to limit the fees was blocked by both parties.

http://www.mybanktracker.com/bank-ne...05/19/senate-blocks-atm-fee-limit/

Quoting san747 (Reply 42):
There are a lot of people who don't need a physical branch to visit to conduct business, and if you don't use ATMs a lot (I hate carrying cash except when absolutely necessary), you can easily have the "free lunch."


That depends. This is not an ATM fee, it is a fee assessed on the first use of your debit card for anything, every month.

Quoting blueflyer (Reply 46):
As per the banks' own admission, the very people you claim will be hurt the most were paying at least one NSF fee per month (at $29+ a pop) for their "free" checking account.


So exactly why will this "benefit" them? They will still bounce the check, and now on top of that will get hit with a $5 fee for the use of their debit card.
Warm winds blowing, heating blue skies, a road that goes forever, I'm going to Texas!
 
ltbewr
Posts: 14574
Joined: Thu Jan 29, 2004 1:24 pm

BOA Debit Card Fee To Start Next Year.

Sat Oct 01, 2011 1:24 pm

Here is another prespective: Retailers from small to large will save, paying less fees to the banks to process their transactions done on debit cards. Part of this change was to cut the costs of businesses to accept debit transactions, typically $.25 (25 cents) and 1.5 to 2.0% on top of that. On a $5 transactions, they may have lost their net profits on such sales when done on a debit card. If you are let's say Walmart that could be maybe be $1 Million a day, $100's of Millions per year, saved to add to their profits. Much of the changes was from the big reatilers like Walmart and organiations that represent various sized retailers who were looking to increase their profit margins by cutting their fees, especially with the growth of higher fees on credit cards on 'rebate' ATM cards, their customers be dammed.
 
dxing
Topic Author
Posts: 5859
Joined: Wed Nov 12, 2008 5:14 pm

RE: BOA Debit Card Fee To Start Next Year.

Sat Oct 01, 2011 1:40 pm

Quoting ltbewr (Reply 48):
Here is another prespective:

I would find it hard to believe that they did not work the anticipated fee into their cost structure. As described, many small business that could not afford to raise their prices anymore to cover the cost of the debit or even credit card transaction simply put a minimum purchase before the use of a debit or credit card could be used.
Warm winds blowing, heating blue skies, a road that goes forever, I'm going to Texas!

Who is online

Users browsing this forum: aerlingus747, B717fan, Brunopt, cjg225, Kiwirob, N583JB, tommy1808, UALeng, UnitedBoeing and 31 guests

Popular Searches On Airliners.net

Top Photos of Last:   24 Hours  •  48 Hours  •  7 Days  •  30 Days  •  180 Days  •  365 Days  •  All Time

Military Aircraft Every type from fighters to helicopters from air forces around the globe

Classic Airliners Props and jets from the good old days

Flight Decks Views from inside the cockpit

Aircraft Cabins Passenger cabin shots showing seat arrangements as well as cargo aircraft interior

Cargo Aircraft Pictures of great freighter aircraft

Government Aircraft Aircraft flying government officials

Helicopters Our large helicopter section. Both military and civil versions

Blimps / Airships Everything from the Goodyear blimp to the Zeppelin

Night Photos Beautiful shots taken while the sun is below the horizon

Accidents Accident, incident and crash related photos

Air to Air Photos taken by airborne photographers of airborne aircraft

Special Paint Schemes Aircraft painted in beautiful and original liveries

Airport Overviews Airport overviews from the air or ground

Tails and Winglets Tail and Winglet closeups with beautiful airline logos