Bank of America nixes plans to charge $5 debit card  fee, citing customer backlash 

Bank follows in footsteps of Wells Fargo and Chase

Tracy Connor
NEW YORK DAILY NEWS

Tuesday, November 1 2011, 12:13 PM

The about-face comes just days after Chase and Wells Fargo scrapped tests of similar fees.

“We have listened to our customers very closely over the last few weeks and recognize their concern with our proposed debit usage fee,” David Darnell, co-chief operating officer, said in a statement.

“As a result, we are not currently charging the fee and will not be moving forward with any additional plans to do so.”

The turnaround comes too late for Brooklyn magazine editor Emily Nathan, who won’t be a B of A customer much longer.

“I’m already changing banks, switching to a smaller bank,” the 26-year-old said after withdrawing some cash from a Bank of America ATM in lower Manhattan.

“These people rob you blind. The whole banking industry is disgusting.”

Richard O’Brien, 40, an organizer with the United Federation of Teachers who was making a withdrawal at the same ATM, said the anti-greed protest a few blocks away probably helped sway bank bigwigs.

“I think it’s directly related to Occupy Wall Street, the pressure coming from there,” he said. “It’s a good sign. It’s testament that something is happening.”

Bank of America had planned to launch the fee in 2012, charging any customer who did not have $20,000 on deposit.

It was hardly the first bank to impose such a fee, but as the nation’s largest debit-card issuer, it became a lightning rod for angry consumers.

There were plans for a “Bank Transfer Day” encouraging people to switch to credit unions on Saturday, and more than 300,000 people signed an online anti-fee petition.

Other banks are feeling the heat, too.

Regions Financial, a large bank based in Birmingham, Ala., and Atlanta’s SunTrust Banks also rescinded debit fees on Tuesday.

Banks turned to the customer debit fees to make up for lost revenue after the Federal Reserve capped at 21 cents the “swipe” fees that merchants are charged per transaction.

There are still plenty of other fees for customers to complain about. Bank of America has started charging $5 to replace lost debit cards — a service that was free.

Citigroup doesn t charge for debit-card usage but announced plans in September to assess a $10 monthly fee for checking customers who don t maintain a $1,500 balance or pay a bill and make a direct deposit online.

With News Wire Services