Gouging Award goes to banks for new debit card fee

[quinnox]

Mirror, mirror on the wall, who's gouging consumers most of all?

It's a close contest. But today's Gouging Award goes to the banks, courtesy of Bank of America's decision Thursday to start charging $5 a month in 2012 to customers who use debit cards to make purchases. (ATM use will remain free.)

That adds up to a $60 annual fee. It's a miserable idea, a miserable fee and miserable economic timing.

If banks really followed truth in advertising rules, B of A's crack marketing team would have to pitch this charge to consumers as the new Hit 'Em When They're Down fee.

Among thousands of respondents to the survey, more than 84 percent picked this choice:

Yes, I am sick of being nickeled and dimed.

Actually, we need to update that cliche. Nickels and dimes are so yesterday. Consumers these days are getting zapped by fees typically 100 times that size.
Even before this debit card charge, Bank of America hovered low on the popularity meter. Don't forget, this is also a bank that received a $45 billion federal bailout in 2008.

On TV's Fox Business Network on Thursday, consumer finance anchor Gerri Willis grabbed a pair of scissors to cut up her own B of A debit card, saying: "I'm going to show Bank of America what I think of their fees."

B of A's stock price has been pummeled by investors who see the bank's past purchase of the toxic Countrywide Mortgage business as a major blunder. It also faces numerous high-profile lawsuits and bad publicity from ham-handed dealings with customers in foreclosure. The bank's recent plan to cut 30,000 employees in the coming years only adds to the perception that management is out of touch.

B of A's stock closed Friday just over $6. That's down more than 50 percent for the year.

It probably does not help that Bank of America's well-heeled customers — those who leave enough money in their checking accounts to avoid most, if not all, of the bank's fees — won't even be affected by the new $5 debit card charge. Only the working stiffs must pay.

http://www.tampabay.com/news/business/gouging-award-goes-to-banks-for-new-debit-card-fee/1194620

[qb]

1. This action by the banks is transparently childish and passive-aggressive.

"Waaaah! You called us on our other abusive fees, so we'll just impose more."

Since corporations are already classified as people, they should be further classified as children so that sensible guardians can be assigned to monitor & correct their behavior.

[katmondoo]

2. Debit card fee

It is $5.00 for every time you use the debit card. This just happened with my bank, Regions in Florida. I took out my money and moved it to a Credit Union, hopfully they will not do the same. They also started to charge for checking accounts unless you have #1500.00 plus a direct deposit of over $500.00. I have been with this bank for over 20 years. They were once a good bank.

[Cool Logic]

3. "I took out my money and moved it to a Credit Union,..."

Credit Unions are the only way to go--the one I use does not charge a fee on anything. I have never used the services of a traditional bank and do not understand why anyone would.

[Nay]

4. Are you sure? $5 EACH TIME? That would make the card unaffordable

for most people. If you used the card twice a day, that's $300 per month in just fees. That can't be right.

[GreenStormCloud]

5. $5 per month service charge for a debit card. N/T

[fortyfeetunder]

6. You pay $5/month if you use a debit card for a purchases.

the only way to circumvent this is to use the debit card for ATM withdrawals, and I might add at BOA....Though I wonder how much longer this will be 'free' at BOA...