NEW YORK –Bank of America had announced in September 2011 its plans to charge a fees from the customers who use debit card for shopping.
The charges of $5 per month were to be levied on the debit card users. The resistance from customers that made many banks drop their plans of charging the debit card users has triumphed once again and now an insider’s information revelled that Bank of America is reconsidering the matter. Levying of debit card charges on was by many politicians as well as many consumer advocates. The utmost prominent criticism came from President Obama.
Bank of America’s choice of charging the debit card fees was a response to the Durbin Amendment that was incorporated on 2010 Dodd-Frank financial reform bill. Due to his amendment that banks has to reduce their present charge of 44 cents to 21 cents on the mercentile coustomers using the debit cards.
Bank of America is now revising the plans and is considering offering the customers certain news ways by which they can keep the debit card fees to be levied at bay though the present clientele that holds premium accounts is exempt from such charges.
The options that might be offered to the consumers for saving on the charges are like getting their paychecks directly deposited with Bank of America or using Bank of America’s credit cards instead of the debit cards. Yet another option is to maintain at least the minimum balance in their accounts.
JPMorgan Chase had imposed such fees on experiment basis in two states in Feburary this year. They too had to withdraw their plans of levying such charges. Co-incidentally both Bank of America as well as JPMorgan chase made the announcement on the same day.
Wells Fargo absolutely dropped its plan to impose similar charges that it was planning to impose in five states on pure experimental basis.
Bank of America was not the first bank to charge fees for use of Debit card as a matter of fact Sun Trust as well as Regions Banks already are charging such monthly fees from their customers.