Friday, September 30, 2011

BofA $5 Monthly Debit Fee = First of Many Backfires Expected from the Regulatory Vehicle known as the Durbin Amendment.

The $5 monthly debit fee will most likely backfire on Bank of America as well. It rivals the purchase of Countrywide for lack of forethought and demonstrates how out of touch BofA has become.

This news will be well received by our nation's credit unions as I expect BofA will lose millions of customers over this ill-advised decision.

Another potential big winner is Ally Bank who has been afforded the "opportunity" to put together a kick-butt commercial that will fit right in with their current approach to their customer centric theme.

Why did she pay a penny and it costs me $5.01?

Durbin blasts Bank of America's new debit fee‎ The Hill (blog)

Bank of America blames new $5 debit fee on Durbin measure

By Peter Schroeder - 09/29/11 03:54 PM ET

The bank, the largest in the nation by assets, blamed its decision on the so-called Durbin Amendment, a provision of the Dodd-Frank financial reform law put into place by Democrats in 2010 that set limits on the fees banks could charge retailers for swiping their debit cards. Bank of America announced Thursday it will charge its debit card users a $5 monthly fee beginning in early 2012, provoking fury from a senior Democrat. Bank of America said the economics of debit cards has been altered by the fee limit, which will take effect Oct. 1. Banks say the fees go to pay indirect costs of providing debit cards, such as fraud and overdraft protection.

Customers Blast Bank of America's $5 Debit Card Usage Fee‎
International Business Times - Manikandan Raman - 1 hour agoBank of America (NYSE: ... a $5 monthly fee for debit card usage as Dodd-Frank Act's Durbin amendment ...I
n-Depth:

Bank of America to add $5 monthly debit card fee as era of low ...‎ Washington Post

Video: America's Money: Bank of America Debit Fees; Economy Grows