bank of america

[maflynn]

but because they weren't allowed to expose themselves so much to risky investments, they didn't lose their shirts, and therefore the debit card monthly fees are not critical to their survival.

My point is the government stepped in and changed the regulation, which capped the banks ability to charge a fee. Instead of losing that revenue stream, they passed it on to the consumers directly. A bank's profitability, or investment history has nothing to do with that behavior. Any institution would do the same regardless of their financial health. If the government stops one revenue stream, they will open another typically against the consumer.

 

[snberk103]

My point is the government stepped in and changed the regulation, which capped the banks ability to charge a fee. Instead of losing that revenue stream, they passed it on to the consumers directly. A bank's profitability, or investment history has nothing to do with that behavior. Any institution would do the same regardless of their financial health. If the government stops one revenue stream, they will open another typically against the consumer.

I understand what you are saying, but I don't necessarily agree. I would rephrase it as "Instead of losing that revenue stream, they will consider passing it on to the consumers directly." [bolding is my change].

Yes, the company will want to make up that lost revenue stream. But they will also consider how much goodwill will they lose, and how much revenue they will lose by losing customers (for example moving their mortgages to credit unions). If a bank's back is against the wall, they may decide they need the short-term revenue stream in order to survive - and they'll worry about the long-term potential loss of customers later when they have some more room to breath.

Banks that are financially healthy have the luxury of being able to think long-term. And losing customers over a monthly debit card fee will seriously erode your long-term revenue streams, like mortgage interest, credit card interest, etc etc. Plus, if your competition is healthy, they can (and will) use the fact that they don't charge a fee in order to steal your customers.

It doesn't help matters that in the US, I doubt that many banks are making any money at all on their mortgage portfolios. They need this revenue stream. My argument is that if they had been regulated at the beginning, and couldn't get into the sub-prime market, then the debit card revenue wouldn't have been quite to critical. Charging this fee, to my mind, shows just how desperate the banks are to stay afloat.

 

[zioxide]

CNNMoney (NEW YORK) -- Bank of America said Tuesday it's axing its plan to charge a $5 fee for customers who use their debit cards to make purchases.
In September, the bank announced that it would begin charging most customers the monthly fee early next year.
But after widespread customer revolt and announcements by several of its rivals that they won't charge similar debit-card fees, Bank of America (BAC, Fortune 500) backpedaled on its plan. Customers who use their debit cards will no longer incur the fee starting in January.

customers = winning.

http://money.cnn.com/2011/11/01/pf/bank_of_america_debit_fee/index.htm?hpt=hp_t1

 

[bradl]

customers = winning.

http://money.cnn.com/2011/11/01/pf/bank_of_america_debit_fee/index.htm?hpt=hp_t1

Customers not banking at Bank Of America anymore = Winning.

BL.

 

[rdowns]

How the hell can we be winning if we're still printing money to loan to the banks at no interest while they loan it out at as much as 25%?

 

[bradl]

How the hell can we be winning if we're still printing money to loan to the banks at no interest while they loan it out at as much as 25%?

That's another issue altogether. For this small problem, it was the strength in the numbers of people complaining and threatening to pull their money from BofA that got them to reconsider. Regardless, I personally am still considering closing my account and opening another one at my credit union.

BL.

 

[rhett7660]

That's another issue altogether. For this small problem, it was the strength in the numbers of people complaining and threatening to pull their money from BofA that got them to reconsider. Regardless, I personally am still considering closing my account and opening another one at my credit union.
BL.

You and me both. In fact we are with Wells and as soon as our application goes in we will be moving away from Wells since they are testing this fee in select markets before they go company wide with it.

 

[ucfgrad93]

Wells Fargo has scraped plans to charge a monthly fee for their debit cards.

 

[2jaded2care]

I'll be surprised if this is the end of the issue...

http://www.theatlantic.com/business...may-cost-billions-for-bank-of-america/247702/

My main point is, when government decides who the "winners" in business should be, usually consumers end up on the hook.

 

[yg17]

Too late BoA. I already moved my money to another bank and haven't looked back.

 

[rhett7660]

Wells Fargo has scraped plans to charge a monthly fee for their debit cards.

Well that is good to know, still moving forward with moving my money from them though.

 

[iJohnHenry]

Well that is good to know, still moving forward with moving my money from them though.

"PLEASE leave your money with us, and maybe we'll give you a new toaster."

 

[rhett7660]

"PLEASE leave your money with us, and maybe we'll give you a new toaster."

You would have me at one of those middle of line blenders....

 

[puma1552]

I'm officially bank free. I just completed the messy hassle of moving all my accounts over to my credit union. I've had my credit union for 10 years and always do loans through them because they take a steaming dump on banks in terms of rates and customer service, but I had previously avoided keeping checking/savings there because they aren't very accessible ATM-wise. That all changed when I realized they have a partnership to use Wells Fargo ATMs, so as soon as I realized that I dropped my horrible bank (TCF National) like a hot potato.

Nothing feels better than being bank free.

 

[Rodimus Prime]

I'm officially bank free. I just completed the messy hassle of moving all my accounts over to my credit union. I've had my credit union for 10 years and always do loans through them because they take a steaming dump on banks in terms of rates and customer service, but I had previously avoided keeping checking/savings there because they aren't very accessible ATM-wise. That all changed when I realized they have a partnership to use Wells Fargo ATMs, so as soon as I realized that I dropped my horrible bank (TCF National) like a hot potato.
Nothing feels better than being bank free.

You might want to see if your credit union is part of the All Point ATM network.
All Point ATM are free to members. My credit union is part of it and I have full access account (deposit, check balance and withdrawal) for free. They are always in neutral location like drug stores, gas stations and some airports.

I know I would visit an one in an Exxon Station where I got gas quite often. The other one was one in Love Field in Dallas.

 

[TheHellfish]

Calm Down

I hate banks just like the rest of you, but typically those that complain about fee's do so because they don't manage their money properly. Just like buying a car, or house, or anything major - do your homework! This is the company that will be holding your money. Get the right fit for you. Don't blame the banks for fee's that are spelled out in their literature.

Of course that doesn't take into consideration things like crappy customer service or the (very) rare mistake. But the news of the $5 charge is well before it's implementation, so consumers can make an educated decision to stay or go. But be assured, all banks (including small ones and credit unions) will adopt these practices when it becomes commonplace and the hype of it is dead. By that time you're left with a financial institution that isn't widespread, has poor online capabilities and can't keep up with your needs.

Go around this BS fee (yes I do think it's BS) by using credit cards instead. Or start carrying cash again. Everyone accepts cash and those that don't accept checks. Complaining about it though? Come on it's time to be a big boy and roll with the punches.

 

[iJohnHenry]

I hate banks just like the rest of you ...

The cynical hairs on the back of my neck just had erections.

When you have been with a bank for a long time, yet they slowly introduce "fee" changes, without regard for customer longevity, they are using their clients.

Today, moving a bank is complex and arduous, and they count on this.

Moving payroll deposits, pre-authorised debits, loans, mortgages, etc is a big pain in the ass.

Credit Unions are the way to go. They are owned by their customers.

 

[zioxide]

I wish more banks would get with BofA and upgrade their ATMs. Their cash and check deposit system is pretty much the only reason I am still there.

 

[bradl]

I wish more banks would get with BofA and upgrade their ATMs. Their cash and check deposit system is pretty much the only reason I am still there.

Even BOFA is still behind. Some banks (Chase) allow you to use their iPhone app to scan and deposit your checks, saving you the trip to the bank or the ATM.

My credit union is in the middle of going to that.

BL.

 

[bruinsrme]

Even BOFA is still behind. Some banks (Chase) allow you to use their iPhone app to scan and deposit your checks, saving you the trip to the bank or the ATM.

My credit union is in the middle of going to that.

BL.

Digital credit union has had the check scanning for a year or so.
Navy federal credit union has introduced intrabank transfers. I can now transfer money from any navy federal account to any bank I have registered or from any bank I have registered to my navy federal accounts. Can remember if there is a $5 dollar fee or not.
Lost my ATM card on vacation, simply transferred funds from one bank to another on my laptop, back in business.

 

[zioxide]

Even BOFA is still behind. Some banks (Chase) allow you to use their iPhone app to scan and deposit your checks, saving you the trip to the bank or the ATM.

My credit union is in the middle of going to that.

BL.

Yeah I saw that.. cool stuff. doesn't work for cash though.. which is my primary use. I'm a waiter.. so I deal with pretty much all cash.

 

[TheHellfish]

The cynical hairs on the back of my neck just had erections.

When you have been with a bank for a long time, yet they slowly introduce "fee" changes, without regard for customer longevity, they are using their clients.

Today, moving a bank is complex and arduous, and they count on this.

Moving payroll deposits, pre-authorised debits, loans, mortgages, etc is a big pain in the ass.

Credit Unions are the way to go. They are owned by their customers.

Hairs that get erections? ha!
Yes changing banks is a pain, much like changing most major anything. But like I said, the news comes well before its implementation. In reality what must you change? Direct deposit destinations are easily changed these days. Auto drafts can be changed as well. List your electronic expenses and look to modify them. If the reward isn't worth the hassle, then you'll know the true importance of the fee. If you have a problem with it and you aren't willing to do something about it (other than complain on an apple forum), then it really isn't that big of a problem. Believe what you will, but if the banks lose enough customers ($$$) over this they will change the practice.

Another alternative (if completely changing banks is out of the question) is to have multiple bank accounts. Use the bank that doesn't charge for debit transactions for your debit purchases. Most companies offer the ability to split your direct deposit to multiple accounts. That's only one "change" instead of many.

I also want to point out that credit unions aren't all that great. I've had one for several years. I stopped using it and even though I had money in it they charged me each month for not using it. That doesn't sound very customer owned to me. My point is that every financial institution has its pros and cons. It's up to the consumer to weigh it out.

Now as to the bank "using" the customer, how is this being done? Every bank/service company changes their fees over time. The cost of everything goes up over time, with very few exceptions. Being grandfathered into prices still happens on occasion, but that doesn't last forever. Expecting it to because you are an existing customer is just unrealistic.

 

[Music_Producer]

I love how people complain about a $5 bank fee, but don't make an uproar when they are getting shafted with 20-40% increases in ridiculous healthcare costs and insurance.