Bankster of America plans more shakedowns of its customers

[marmar]

(Bloomberg) Bank of America Corp. (BAC), the biggest U.S. lender by assets, plans to announce a $5 monthly charge for some debit-card users to recoup revenue lost after new federal rules capped so-called swipe fees.

Customers with lower-tiered accounts, including the firm’s online-banking option, may start getting assessed the fee for debit-card purchases in January, said Anne Pace, a Bank of America spokeswoman. Users won’t be charged for cash-machine withdrawals, and clients with premium accounts including those linked to the Merrill Lynch brokerage aren’t affected, she said.

Bank of America, based in Charlotte, North Carolina, is joining rivals including JPMorgan Chase & Co. (JPM), Wells Fargo & Co. (WFC) and SunTrust Banks Inc. (STI) in rolling out new charges for debit- card users. The Federal Reserve’s rules limiting swipe fees, or interchange, take effect next month. Banking industry representatives have said the changes enrich merchants while penalizing lower-income consumers.

“One of the unintended consequences is that this would disproportionately harm lower-income individuals,” said Trish Wexler, a spokeswoman for the Electronic Payments Coalition, which represents banks and networks. “If you can’t afford $5 a month, you’re going to stop using your debit card.” ...........(more)

The complete piece is at: http://www.bloomberg.com/news/2011-09-29/bofa-to-charge-5-monthly-fee-to-customers-using-debit-cards-for-purchases.html

[lebkuchen]

1. two words

credit union

[mysuzuki2]

2. I agree 100%

banks HATE credit unions!

[ProudToBeBlueInRhody]

14. Yup

I work in a building with BoA offices in it and got waylayed by one of their chattering automatons as I entered the cafeteria trying to get people to open an account with them. When I said I didn't have a BoA account her face lights up like she was about to save my life. I said I was in a credit union, loved them and their service, and you could see her face start to drop as she knew there was no argument other than "But we're big and everywhere!" she could lay on me.

[county worker]

3. Close your B od A accounts and move them to a local credit union.

I use a credit union.

I have free checking. No ATM charges. If I go to an ATM that is not in the credit union group I get any ATM fees refunded to my checking account. I get interest on my checking and savings account but it isn't much but it is there. I can pay my car loan from another credit union at my credit union because they are working together.

I keep my balance on a spreadsheet which I update with statements I can get on line 24/7. I always know what my true balance is because I know what items aren't showing on the statement but usually anytime I use my debit card it shows up instantly. Only if I use it as a credit card does it take a few days at times. Also I have no over draft fees since I can cover an overdraft from my savings account.


F..k B of A

[FloriTexan]

4. I called BOA customer service...

and they said they would be charging $5 replacement card fee only and absolutely said they would not be charging a monthly fee for debit card use. We'll see.

[Evergreen Emerald]

6. they lied...I just called the BOA customer service

and they told me that they indeed will start charging folks...I am going to a credit union.

[rdking647]

5. no one forces you to use BAC or a debit card

there are alternatives...

[Freddie Stubbs]

7. It's not a shakedown if customers willingly stay with BoA

[marmar]

8. No, then it's just willful naiveté on the part of the customer.

nt

[Freddie Stubbs]

9. "Caveat emptor"

[louis-t]

10. I have my home loan and 2 credit cards at BoA. Just got a loan mod.

It was ridiculously complicated, confusing and time consuming. I still don't trust that it's over yet. The last 2 times I spoke with their customer service, I've ended the conversation with "I hope they are recording this, I know this is not your fault, but pissing off every customer BoA has on a daily basis is NOT a good business model." Can't wait to get away from them.

[FloriTexan]

17. You probably won't have to worry about this fee...

If you are an upper tier client. This fee is not for all accounts.

[louis-t]

18. No, I won't. I don't use my card for purchases.

It still ticks me off.

[Fire Walk With Me]

11. Didn't they just get a bailout and give themselves huge bonuses? (sarcasm)

[arikara]

12. When I moved from a bank to a credit union

approx 10 years ago, they even did all the work of notifying every direct deposit / withdrawal account such as monthly car / house insurance etc of the changeover. It was so easy. And now I have an account with NO fees at all. Nada.

[JDPriestly]

13. This is horrible.

I know a very elderly woman -- 94 -- who has a bank account. She buys very little and doesn't want a credit/debit card. Her bank, however, requires her to have a credit/debit card if she wants to have a checking account with her. And now, her bank is asking her to pay a fee for the fact that she has her card -- although she has a fair amount of money in her account.

This is unconscionable. Here is an elderly woman, trying to simplify her life -- and the bank puts a charge on her for keeping her money. Banks used to put your money to work and make a profit from keeping its safe.

This shows you how really, really bad our economy is. When you put money in the bank, you are essentially lending that money to the bank. The bank can use it as collateral for borrowing more money and can invest it. But the economy is so bad that the banks have no place to put your money, the bank's money, no place that will bring the bank profit. The bank pays virtually no interest and now wants to charge you for the privilege of allowing the bank to simply hold on to your money and do nothing profitable with it.

What a bunch of losers. Meanwhile the bankers take big salaries and bonuses to boot.

Let them earn their money for a change -- and not from depositors. If they don't want poor people to use their banks, they should just say so. There was a time when we who earned minimum wage carried cash from paycheck to paycheck. We could go back to that. Why not?

[Yo_Mama]

15. They won't charge the fee if you don't buy stuff with the card

You can use it for ATM, etc, but it is only if you use it for purchases that you will get the fee that month.

I expect them to lose a lot of accounts over it, but they are losing money on a lot of accounts right now, so I don't think they care.

And yeah, banks are chock up with cash right now, and the credit is falling, so there is little they can do with the money. They have costs to provide these services, so....

[Initech]

16. In de-regulated capitalist America, banks rob you!