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Thread: Bank of America's CEO defends $5 debit-card fees: We Have a 'Right to Make a Profit'

  1. #31
    Elite Member KrisNine's Avatar
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    Banks have plenty of ways to make money off of you. Look at how they process items against your account. They process all of the debits first and then the credits. That one screwed up a lot of people.

  2. #32
    Elite Member greysfang's Avatar
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    We switched our primary checking account from BofA this week, though we still have our mortgage there. Fuck them greedy mofos.

    I was pleasantly surprised how quickly my direct deposit switched. I thought it would be at least 2-3 paycycles, but it was just one.
    FUCK YOU AND GIVE ME MY GODDAMN VENTI TWO PUMP LIGHT WHIP MOCHA YOU COCKSUCKING WHORE BEFORE I PUNCH YOU IN THE MOUTH. I just get unpleasant in my car. - Deej

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  3. #33
    Super Moderator twitchy2.0's Avatar
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    Quote Originally Posted by rockchick View Post
    I'm surprised they don't charge you to park in the parking lot.
    Depends on where you are.


    "The greatest enemy of knowledge is not ignorance, it is the illusion of knowledge."

    -- Stephen Hawking

  4. #34
    Elite Member WhateverLolaWants's Avatar
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  5. #35
    Elite Member MontanaMama's Avatar
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    ^^That pretty much sums it up
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  6. #36
    Elite Member CornFlakegrl's Avatar
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    I was wrong.
    There, I said it.
    I was absolutely convinced that Bank of America‘s plan to charge its own customers fees for using their own debit cards would stick. I was also convinced that Bank of America’s competitors, Chase and Wells Fargo, would jump on the customer gouging bandwagon. After all, it’s happened before, with fees to withdraw from ATMs and fees for not maintaining a significant balance, and each time, customers have reluctantly gotten used to it.
    Apparently, not this time.
    The backlash from Bank of America’s scheme to pass along increased compliance costs to its customers by charging a $5 monthly fee – which they tried to spin as a tax – was enormous. Angry customers took their accounts elsewhere. Others took to the web to protest what was viewed as yet another step by those “too big to fail” banks to make the rich, richer and well, everyone else, poorer.
    And a quite remarkable thing happened.
    The big banks listened. And they changed course.
    Now, Chase and Wells Fargo have announced that they will not impose fees on customers who use their debit cards. And reportedly, Bank of America is considering “options” for its customers in an effort to avoid the fee.
    The man behind much of the debate, Sen. Dick Durbin (D-IL), who is responsible for the so-called “Durbin Amendment” which increased affected banks which offered debit cards, encouraged customers to “vote with their feet” and leave. And customers did.
    So it’s over. Maybe.
    I am, however, a bit skeptical. Those increased banking regulations haven’t gone away. And remember, banks aren’t charities. They’re businesses. They’re going to find a way to make up those anticipated losses from the Durbin regs one way or another. It just won’t, apparently, involve debit card fees.

    Big Banks Switch Course on Debit Card Fees - Forbes

  7. #37
    Elite Member hustle4alivin's Avatar
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    Flipflop by Bank of America and rivals on debit card fees will slash revenues by $8 billion - The Washington Post

    Flipflop by Bank of America and rivals on debit card fees will slash revenues by $8 billion

    By Hugh Son, Updated: Wednesday, November 2, 10:22 AM

    Nov. 2 (Bloomberg) -- Bank of America Corp. and its U.S. rivals may struggle to replace the $8 billion in revenue lost because of federal debit-card rules after abandoning plans to extract more fees from customers.

    Bank of America said yesterday that it wouldn’t charge debit-card users $5 per month, four weeks after the firm’s announcement of the fee sparked a backlash from customers and lawmakers. The lender, which followed JPMorgan Chase & Co. and Wells Fargo & Co. in dropping plans for such charges, also won’t insert debit fees into checking accounts introduced next year, said Anne Pace, a Bank of America spokeswoman.

    Card issuers must seek other ways to replace revenue and trim costs after the Federal Reserve capped fees on debit-card purchases last month at about half the previous level. The limits, mandated by the Dodd-Frank Act, may cut annual revenue by $8 billion at the biggest U.S. banks, according to data compiled by Bloomberg Government.

    “They won’t be able to get it all back because the strategy they were moving towards was a flop,” said Bart Narter, a senior banking analyst at consulting firm Celent. “They might start to require higher balances, or direct deposits from your paycheck, and they’ll try to change consumer behavior to make them less expensive to serve.”

    The retrenchment was the latest blow to the U.S. banking industry, which was also hit by regulations limiting overdraft charges and stricter international rules on capital levels. The 24-company KBW Bank Index has fallen 27 percent this year, led by Bank of America’s 52 percent plunge.

    Lost Revenue

    The lender, the second-biggest in the U.S. by assets, could lose about $2 billion in annual revenue because of the debit rules, executives said in July. The Charlotte, North Carolina- based bank planned on recovering some of that by converting customers to new checking accounts and constraining interest rates paid on deposits, Chief Executive Officer Brian T. Moynihan said at the time.

    “We will continue to initiate actions to mitigate lost revenue where and whenever possible,” Pace said yesterday in an interview. “Our strategy remains consistent in that we will reward customers who do more business with us.”

    Lenders will “find more subtle ways to make up for this lost revenue, increases that may fly under the radar,” said Bill Hardekopf, CEO of Birmingham, Alabama-based research firm LowCards.com. “Banks may increase existing fees or raise the introductory interest rates on credit cards.”

    The firms could also lean more heavily on the practice known as cross-selling, or marketing services to existing customers, said Jason Goldberg, a Barclays Capital analyst.

    Bank’s Misstep

    Bank of America may have erred in the way it introduced the new charge, Goldberg said. While JPMorgan and Wells Fargo were testing smaller fees in some markets, Bank of America said that most customers who didn’t have $20,000 in total balances or a mortgage or a brokerage account would face the new costs.

    The lender timed its Sept. 29 announcement to make it clear to the public that it was a result of federal rules taking effect in October, said a person with direct knowledge of the bank’s planning. The industry has pointed to U.S. Senator Richard Durbin, the Illinois Democrat whose legislation reduced so-called swipe fees, as the reason for the new charges. The lawmaker has said banks still “profit handsomely” from debit transactions.

    Bank of America cited Wells Fargo, JPMorgan, SunTrust and Regions in an internal memo to staff justifying its new fees.

    “Like many other banks across the industry, we are choosing to charge a fee so we can continue to provide a payment vehicle that offers convenience, control, security and utility,” the company said in the September letter.

    Last week, Bank of America executives considered adding ways for customers to avoid the fee, including setting up direct deposits or using credit cards, said another person with knowledge of the lender’s plans. The company dropped the fee entirely after it became clear it was the only national bank that still planned to assess it, the person said.

    Citigroup Inc. and U.S. Bancorp had already rejected imposing new charges, and SunTrust Banks Inc. and Regions Financial Corp. eliminated check-card fees earlier this week.

    The charges had fueled demonstrations in Los Angeles and Boston and prompted a Washington woman to collect more than 300,000 petitions in protest. President Barack Obama criticized the moves as “not necessarily fair to consumers” and U.S. Representative Brad Miller, a North Carolina Democrat and member of the Financial Services Committee, introduced a bill last month that would make it easier for people to switch banks.

    Last Straw

    “For a lot of consumers, this was the last straw,” said Jean Ann Fox, director of financial services for the Washington- based Consumer Federation of America. “Banks have been making a lot of changes to accounts, adding fees and raising the minimum balance needed, and consumers were clear that they objected to one more fee.”

    Moynihan, 52, had defended Bank of America’s plans, saying Oct. 18 that the debit-card fee would encourage customers to use more services with the company to avoid the levy. He has also emphasized the convenience and safety of using the lender’s debit cards -- an argument that may not have swayed consumers, said Narter of Celent.

    “The customer’s perception was that the valid cost of providing debit cards is zero,” Narter said. “Once you’ve had it for free, you don’t want to pay.”

    Too little, too late! I've had it with B of A. Their BS fees and general shadiness have had me running to my insurance company which has an online checking account. No monthly fees and I get reimbursed for ATM fees. I'll try them for awhile until I see something better.

    I'll keep my B of A account open for the time being so the transition over to my new bank goes over smoothly. I'll have to change my data on a number of bills I pay online and switch over my direct deposit, so I will have a check mailed to me for the first time in forever while that is being processed, but it's easy to deposit funds (I can take a picture of the check on my phone and submit it on a mobile app), but I feel a few keystrokes will save me a lot of pain in the long run.

    They may waive the fee for now, but they'll find other ways to charge you and fuck you over. Fuck them with a splintery broomstick.

    I have a friend who works for B of A and he told me not to leave. He said people have been complaining and closing their accounts left and right. I told him, "Good!"

    If more people voted with their pocketbook and feet, we wouldn't be in this horseshit mess.
    Last edited by hustle4alivin; November 2nd, 2011 at 02:52 PM.
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  8. #38
    Elite Member MontanaMama's Avatar
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    Why would say they need to replace lost revenue - it was revenue they never had.
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  9. #39
    Elite Member greysfang's Avatar
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    We moved our direct deposits the week after this was announced, and will be closing the account in the next couple weeks. Fuck BofA. I was with them more than 10 years and they done fucked me over one too many times.
    FUCK YOU AND GIVE ME MY GODDAMN VENTI TWO PUMP LIGHT WHIP MOCHA YOU COCKSUCKING WHORE BEFORE I PUNCH YOU IN THE MOUTH. I just get unpleasant in my car. - Deej

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  10. #40
    Elite Member Mel1973's Avatar
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    Agreed. Like I told my ex when this shit was first announced - if people treat them the way they treated Netflix over $5.00 per month, they will ALL start to get the message. And the message is "We have been nickle and dimed to fucking death and we're not taking this shit anymore!" Fuck this bullshit. All the arguing between NewsCorp and DirecTV... its all the same shit. People are tired of everyone saying "well, its only five more dollars per month" and the assholes running these companies are finally getting the message! Quit fucking us like we don't know your dick's in there!
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  11. #41
    Elite Member witchcurlgirl's Avatar
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    They were trying to replace what they lost on the merchant side. When Dodd-Frank capped the fee that the banks could charge merchants they weren't willing to just let that revenue go, they were going to make it up on the consumer.

    They'll come up with some other way to recoup the loss. Bastards.
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  12. #42
    Elite Member hustle4alivin's Avatar
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    Quote Originally Posted by Mel1973 View Post
    Agreed. Like I told my ex when this shit was first announced - if people treat them the way they treated Netflix over $5.00 per month, they will ALL start to get the message. And the message is "We have been nickle and dimed to fucking death and we're not taking this shit anymore!" Fuck this bullshit. All the arguing between NewsCorp and DirecTV... its all the same shit. People are tired of everyone saying "well, its only five more dollars per month" and the assholes running these companies are finally getting the message! Quit fucking us like we don't know your dick's in there!
    Okay! My parents bank with Wells Fargo and they are getting sick of them too. My mom says she is switching over to her credit union ASAP.
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  13. #43
    Elite Member WhateverLolaWants's Avatar
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    We banked with them for about 7 years. We were always being slammed with 'maintenance fees' etc. I also had the account set up to dip into my savings if I accidentally overdrew my checking account and they charged me a 25$ fee if that happened, even though that service was especially tailored to that purpose. I can understand if I did it several times in a month, but what is the point of having a service like that if they charge you basically the same an an overdrawn fee?

    No thanks. We switched to a credit union and have never looked back.
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  14. #44
    Elite Member louiswinthorpe111's Avatar
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    I dropped Wells Fargo 5 years ago and went to a credit union. First, they charged a monthly fee for internet bill pay, so we neer signed up for it, but they would continually charge us. So I closed the account I opened in 1990.

    LOVE my credit union. Love free online bill pay. they don't nickel and dime you. I can imagine being anywhere else.
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  15. #45
    Elite Member southernbelle's Avatar
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    Does anyone here bank with USAA? I am a member and have been thinking about it because I'm very happy with their other services.

    I agree the $5 monthly debit card fee is absurd. I refuse to pay a monthly fee for the "privilege" of having access to my own money.

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