The Money Mentor: The Entire Nation Agrees to Transfer Out of Big Banks at the Same Time

2 Nov

by Lorillia Brown Phillips, Your Black World  – The Money Mentor

Today on November 1, 2011 Bank of America recently announced that they will drop the proposed plans to institute the $5.00 debit fee which was suppose to go into effect in 2012. Since September there was a surge of angry and disgruntle customers who were not happy with the decision that Bank of America was imposing. Customers who were outraged with the upcoming mandate expressed their concerns on social media sites such as Twitter, You Tube and Facebook. It was reported that there was a petition signed by 300,000 customers across the US threatening to leave the bank if the proposed fee had been imposed.

According to ABC News, David Darnell, co-chief operating officer of Bank of America, made a statement today, "We have listened to our customers very closely over the last few weeks and recognize their concern with our proposed debit usage fee. Our customers’ voices are most important to us. As a result, we are not currently charging the fee and will not be moving forward with any additional plans to do so.” Although Bank of America is saying they do not have any additional plans to go forward with the plan, the bank has reported, according to ABC News “We’re continuing to refine the program”.

Capitalizing on the Bank of America debit card fiasco in September, many credit unions and smaller community banks welcome BOA irate customers with open arms. A small business owner in California, who was fed up with the treatment of her big bank, started an online movement online called “Bank Transfer Day” with the use of the internet and social media. The Bank Transfer Day which is supposed to take place on November 5, 2011 is to encourage customers who are upset with their big bank to transfer their bank deposit funds to credit unions. According to their Facebook page, the mission for their cause is: Re-invest in our local communities through the transfer of funds from "big banks" to credit unions.

What caused Bank of America to act so forcefully in imposing the $5.00 debit Fee? Possible changes to the Dodd-Frank’s Durbin Amendment, which was a capped debit card interchange fee for merchants at 21 cents per transaction earlier this year. Before the amendment, debit card companies charged merchants an average interchange fee of 44 cents per transaction. This reduce revenue source allow BOA to come up with creative ways to recoup its loss, by imposing the fee to the customer through debit fees.

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