The second biggest bank in the U.S., Bank of America, has scrapped plans for a $5 monthly debit card fee, making it the last big bank to step back from plans to implement new fees attached to debit cards.
In a press release, Bank of America attributed the change in plans to both changes in the competitive marketplace, and response from consumers.
Other big banks, including, Chase, U.S. Bancorp, Citigroup, PNC Financial Services Group, and KeyCorp, among others, recently announced that they would not impose monthly fees on debit cards, after many conducted tests of new fees in some states.
Bank of America first announced its plans to charge a monthly $5 fee for debit card transactions in September. At that time other big banks were testing similar fees.
In a press release, Pamela Banks, senior policy counsel for Consumers Union, the advocacy arm of Consumer Reports, stated the following:
The public backlash over debit card fees should serve as a big wake up call to banks that they can’t arrogantly take their customers for granted. While banks may come back with other fees in the future, they’ll be gauging public reaction carefully. Consumers should be on the lookout for new fees and remember that if they’re not happy with how they are being treated, they should shop around for a bank or credit union that can offer them a better deal.
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Bank of America Will Not Implement Debit Usage Fee [Bank of America]