Another reason to hate BOA

[nissangirl74]

http://finance.yahoo.com/news/Bank-of-A ... 2.html?x=0

" Bank of America will start charging debit-card users $5 a month to pay for purchases.....The fee will apply to basic accounts, which are marketed toward those with modest balances, and will be in addition to any existing monthly service fees."

People were calling into the local radio stations yesterday to discuss this and they were PISSED! One woman had 5 different accounts with BOA and went and closed all of them. Everyone who banks with them, Chase, and Wells Fargo (the other National banks that are charging usage fees for their debit cards), needs to close all of their accounts and take their business to the local credit union. The customer service is better, the rates are better, and most of them don't charge excessive fees (if any). This just makes me want to get our house paid off that much quicker so we don't have to deal with these people any more. UGH!!!

[Bubba1]

http://finance.yahoo.com/news/Bank-of-A ... 2.html?x=0

" Bank of America will start charging debit-card users $5 a month to pay for purchases.....The fee will apply to basic accounts, which are marketed toward those with modest balances, and will be in addition to any existing monthly service fees."

People were calling into the local radio stations yesterday to discuss this and they were PISSED! One woman had 5 different accounts with BOA and went and closed all of them. Everyone who banks with them, Chase, and Wells Fargo (the other National banks that are charging usage fees for their debit cards), needs to close all of their accounts and take their business to the local credit union. The customer service is better, the rates are better, and most of them don't charge excessive fees (if any). This just makes me want to get our house paid off that much quicker so we don't have to deal with these people any more. UGH!!!

No one is gonna like it but all the other major banks are expected to charge the same monthly usage fee as BOA. So don't be too shocked when Credit Unions do the same thing within the next few months. Then what are you gonna do?

Also, from what i've read, the monthly fee does not apply to ATM transactions, just purchases that you pay with your debit card. There are ways around the fee, such as using cash, check or your credit card and paying it off each month.

[krash]

Every purchase???? WTF? I have a student account so I don't pay any fees currently, if this applies to my account I'm closing it.

[Encryptshun]

What rips me is that those same banks are also charging the business you bought from a 2.5% - 5.0% transaction fee as well. So they are making round about 7.5% in fees for every transaction, while their cost to operate their network averages out to about 0.5% - 1.5%.

This is a transparent effort to get people to use credit cards instead of debit cards (the user fees don't apply to credit cards, only the retailer fees). See, the banks don't like it when people pay using their own money (which the bank uses to pad its balance sheet) when they could using money they borrowed from the bank (at 14.99% - 24.99% APR, of course).

[IanS]

They waited unto nobody would accept checks anymore, and now they are trying to get people. Greedy bastards.

Glad im already a credit union member.

[mmkeller]

Does anyone still put their money under a mattress? hummmmmm......

[Bubba1]

Every purchase???? WTF? I have a student account so I don't pay any fees currently, if this applies to my account I'm closing it.

No, not every purchase. it's a flat monthly fee if you use a Bof A issued debit card for purchases (ATM transactions excluded). So it's $5 whether you use yoiur debit card once or 50 times per month. If you use your debit card 50 times per month, it works out to a dime per transaction.

Before getting all worked up over this, keep in mind there are other Bank fees much more expensive than this one. For example, you'd be surprised by the individual transaction fees some banks charge if you use your debit card at a different bank's ATM.

I don't like the fee either but y'all need to keep it in perspective.

[Bubba1]

This is a transparent effort to get people to use credit cards instead of debit cards (the user fees don't apply to credit cards, only the retailer fees). See, the banks don't like it when people pay using their own money (which the bank uses to pad its balance sheet) when they could using money they borrowed from the bank (at 14.99% - 24.99% APR, of course).

That's right. Another big reason it's rolling out now is because of brand new improved (<sarcasm) government regulations that caps what fees banks can charge retailers who accept these debit cards for transactions. The Banks are replacing that lost revenue by shifting it to the consumers.

One might argue that the banks would have eventually figured out this fee for making some additional money, but our government certainly helped accelerate the process.

[Encryptshun]

I misread the original post and somehow thought it was a 5% fee per transaction. $60/year to use a card is still bad enough.

You're spot-on, though, Bubba. "ATM fee" indeed. Not even when in the moment.

[AZhitman]

They're COUNTING on people saying, "Meh, it's just $5."

Screw that. Yet another reason I love our credit union. If you have a chance to switch, do it. We haven't been with a conventional bank for over a decade, and it's great.

[AppleBonker]

Meh. I understand the outrage, but I'm not personally enraged. Sure, fees suck. But I probably only use my debit card 20 times/year, and that's only at ATMs to withdraw money. With the abundance of credit card companies out there offering good kick backs for using their cards, I tend to run everything through an AMEX card. IMO, if you can manage to not overdraw your checking account when using a debit card, you should similarly be able to keep from carrying a balance on a credit card (which means avoiding interest).

I have my main checking account with Chase (and if they implement something similar, which is likely, it wont affect me at all). And my auto loan is with BoA. While the credit unions may offer better customer service, I have found no reason to switch away from either of those two yet.

Note: You wouldn't have a chance of catching me with a savings account at either institution. If we are talking something other than basic checking/auto/mortgage, I'll be going elsewhere.

[C-Kwik]

IIRC from my days as a teller, there has always been a monthly Point-of-Sale fee associated with debit card purchases anytime the service is used in a statement period. I think it was $1.00. So as far as I can tell, its an increase in the fees (perhaps relatively drastic). Perhaps across more types of accounts as well. Either way, I tend to use the credit option at merchants to avoid such fees. Its unfortunate Costco only takes debit transactions except from Amex cards.

[Jesda]

Its a response to federal legislators stepping in and placing caps on merchant transaction fees. To make up for the loss, costs have been directly passed on to the consumer.

The tests follow a cap the Federal Reserve placed on interchange fees that banks charge retailers every time a customer swipes a debit card. The rule is the result of the Durbin amendment to the Dodd-Frank financial reform act passed in July 2010.

Starting Oct. 1, bank charges are limited to about 24 cents per transaction, down from 44 cents.

In advance of the cap, banks including Wells Fargo, SunTrust, Chase and USAA eliminated debit rewards programs.

http://www.ocala.com/article/20110827/A ... /110829750

The Federal Reserve Board on Wednesday issued a final rule establishing standards for debit card interchange fees and prohibiting network exclusivity arrangements and routing restrictions. This rule, Regulation II (Debit Card Interchange Fees and Routing), is required by the Dodd-Frank Wall Street Reform and Consumer Protection Act.

Debit card interchange fees are established by payment card networks and ultimately paid by merchants to debit card issuers for each electronic debit transaction. As required by the statute, the final rule establishes standards for assessing whether debit card interchange fees received by debit card issuers are reasonable and proportional to the costs incurred by issuers for electronic debit transactions. Under the final rule, the maximum permissible interchange fee that an issuer may receive for an electronic debit transaction will be the sum of 21 cents per transaction and 5 basis points multiplied by the value of the transaction. This provision regarding debit card interchange fees is effective on October 1, 2011.

http://www.federalreserve.gov/newsevent ... 10629a.htm



I'm not sure what they expected. If you place a price cap somewhere, cost increases will appear elsewhere. If you put two holes in a bottle of soda, shake it up, and put your thumb over one hole, it will gush out the other.

[Encryptshun]

I know my "libby" colors are showing, but I just can't figure out why, when provided evidence of an industry in collusion to fleece their customers, the indignation is directed toward the governmental policy enacted to protect the customers instead of toward the banks. The fact of the matter is that the average American is too busy trying to keep food on the table to be able to pay attention to a paper cube of fine print that goes along with opening a bank account these days, and it's a fact that the large lending institutions abuse their power.

[bigbadberry3]

To the people who say it's just 5 dollars a month please send 5$ to my paypal every month

[Jesda]

I know my "libby" colors are showing, but I just can't figure out why, when provided evidence of an industry in collusion to fleece their customers, the indignation is directed toward the governmental policy enacted to protect the customers instead of toward the banks.

It's not an ideological issue or a lack of empathy for people who can't pay their bills -- it's basic, simple microeconomics. Artificially fixing/capping a price in one area results in increases elsewhere. If you had a gas station, and the state came in and said you couldn't charge more than 30 cents for soda, you would increase prices on other products and services to make up the difference.

It happens on a wider, macroeconomic scale too.

[themadscientist]

Here's a thought, cash!

Get some f*** money and carry it around to exchange for goods and services. My bank only serves as a conduit for my DD paycheck then the money is immediately taken from them and put in this this thing called, um, a wallet and I carry it around with me. It's like an ATM in your pocket and doesn't charge you withdrawal fees.



Banks are not in business to help you. They are designed to insinuate themselves into your daily transactions and charge you a fee in every direction. Take your money away from them and learn how to live without these contrived conveniences that you had to be instructed that you "needed" and liberate yourself from these evil f***.

[bigbadberry3]

Here's a thought, cash!

Get some f**king money and carry it around to exchange for goods and services. My bank only serves as a conduit for my DD paycheck then the money is immediately taken from them and put in this this thing called, um, a wallet and I carry it around with me. It's like an ATM in your pocket and doesn't charge you withdrawal fees.



Banks are not in business to help you. They are designed to insinuate themselves into your daily transactions and charge you a fee in every direction. Take your money away from them and learn how to live without these contrived conveniences that you had to be instructed that you "needed" and liberate yourself from these evil fornicates.

Is that monopoly money

[Dattebayo]

It's not an ideological issue or a lack of empathy for people who can't pay their bills -- it's basic, simple microeconomics. Artificially fixing/capping a price in one area results in increases elsewhere. If you had a gas station, and the state came in and said you couldn't charge more than 30 cents for soda, you would increase prices on other products and services to make up the difference.

Okay, but you're assuming that these extra fees are added because the bank needs them to continue doing business... This is not a strapped for cash system looking to survive for a bit longer, they are adding fees just because some crackerjack accountant figured out they could turn something they used to consider an expense into a profit maker and BS everyone into thinking it's a service you should pay for, kind of like when they raised the "service charge" fees on show tickets back in the 70's...

[themadscientist]

Is that monopoly money

No, it's yen. The rate today is 74 yen to one dollar. $67.56 for each of those 5000s.

[bigbadberry3]

Is that monopoly money

No, it's yen. The rate today is 74 yen to one dollar. $67.56 for each of those 5000s.

Do you actually get paid in yen or dollars cause that could either be awesome or sucktastic based on the exchange rate?

[themadscientist]

Bills are in yen, pay is in dollars; the suck is high. It used to be 130 yen to the dollar. I may have to go back to exotic dancing. It's a shame they don't pay by the pound.

[Jesda]

This is not a strapped for cash system looking to survive for a bit longer

Actually, it is. In the case of BOA, they're on the verge of bankruptcy.

http://articles.businessinsider.com/201 ... 30155013_1

That's not to say that it isn't their own fault for being so poorly managed, but they are indeed struggling, thus the fees.



Competition makes it easy for a consumer to pull their funds and find another bank. Its not like there's a lack of competent places to stick 10 grand or less. Hell, even the mattress will suffice.

[themadscientist]

So your sleep number starts with $?

[Dattebayo]

Actually, it is. In the case of BOA, they're on the verge of bankruptcy.

Meh. If they are doing so bad, then why do I see BOA's parking lot full every day? And why do they have ATMS on every freaking corner? I guess failure comes dressed in a nice suit these days?

[themadscientist]

Yup

[Eikon]

Actually, it is. In the case of BOA, they're on the verge of bankruptcy.

Meh. If they are doing so bad, then why do I see BOA's parking lot full every day? And why do they have ATMS on every freaking corner? I guess failure comes dressed in a nice suit these days?

They are on the verge of failure because they bought Countrywide Home Loans before the mortgage crisis hit bad. Now they are stuck with billions in bad mortgages and have to charge every bank customer monthly fees to try to remain solvent.

[nissangirl74]

I think the reason people are so upset is because there is such a dynamic difference in our society between those who are doing well and those who aren't. Those who aren't will constantly ridicule those who are as "thieves after the poor man's money". If the economy wasn't in the toilet and people were still making money hand-over-fist, customers would chalk up the $5 increase as a cost-of-doing-business charge and pay it without question. As it stands now, people are fighting and clawing for every dime they can get. For those people, that extra $5 a month, especially over time, could end up being significant.

[Jesda]

Meh. If they are doing so bad, then why do I see BOA's parking lot full every day? And why do they have ATMS on every freaking corner? I guess failure comes dressed in a nice suit these days?

There used to be a Woolworths in every town. A large national presence does not equate to profitability -- maybe in the past, but not now.

I can't believe we bailed out this POS corporation.

[Jesda]

They are on the verge of failure because they bought Countrywide Home Loans before the mortgage crisis hit bad. Now they are stuck with billions in bad mortgages and have to charge every bank customer monthly fees to try to remain solvent.

That's a big part of it. After property values bombed and foreclosures skyrocketed, BOA began charging $10 monthly fees for checking accounts that didn't have regular electronic direct deposits. That was over a year ago.

This recent fee is in direct response to limits set by new regulations governing merchant fees. It is, in the most direct way, a transfer of costs from merchants to consumers caused by government. BOA isn't the only major banking institution doing it either.

I had an incident with BOA a year or so ago that prompted me to report them to the comptroller of currency. It was resolved in my favor.
Worst customer service ever.



The solution is obvious. If the fees are high, leave (http://www.moveyourmoney.info). I still have an account with BOA because of how quickly they clear transactions and release funds, high per-transaction limits for debit cards, ATM cash and check deposits, and the convenience of instant electronic transfers to other BOA customers. Basically, I use them for my business. I cant think of a reason why a typical consumer would choose BOA as their personal bank. Its as impersonal and careless as an institution could possibly get.