October 29, 2011 |
Bank of America Corp., battered by a public backlash over plans to slap a $5 monthly charge on debit cards, is considering more ways to enable customers to avoid paying the charge, according to a person familiar with the matter. The nation's second-largest bank is likely to allow customers to sidestep the fee if they use BofA credit cards in addition to debit cards, have certain direct deposits or maintain a minimum balance, said the person, who was not authorized to speak publicly.
October 18, 2011 |
Wall Street's message to Citigroup Inc. and Wells Fargo & Co.: Cost cutting and accounting gains don't substitute for growing your business. Investors sent shares of both banks sharply lower Monday after they reported third-quarter revenue — aside from special adjustments — dropped amid economic turbulence in the U.S. and Europe. Shares of Citi, the nation's third-largest lender, fell nearly 2%; Wells Fargo shares shed 8%. The results were announced on a bad day overall for financial stocks, which were hurt by comments from the German finance minister that there would be no speedy solution to the debt crisis in Europe.
October 15, 2011 |
This may be a very unpopular thing to say about Bank of America and its planned $5 monthly debit card fee, but it's worth saying anyway: Thank you, Bank of America. The big bank's move created a consumer furor, with consumer activists proposing boycotts by or mass defections of BofA customers to smaller banks without fees, and the bank itself becoming a popular symbol of the financial industry's supposed disregard for the average customer. But its action has a lot to recommend it. First and foremost, it has driven out into the open the real cost of what long has been pitched as a great consumer convenience.
October 7, 2011 |
In the volatile political air ignited by the nation's economic struggles, $5 buys a lot more controversy than it used to. The announcement by Bank of America Corp. last week that it would charge customers $5 a month to use their debit cards has rung up animosity from coast to coast. Coming amid growing anti-Wall Street protests, BofA's new fee has become a focal point for anger and frustration about the flailing economy and Washington's attempts to help the nation recover from the financial crisis.
October 6, 2011 |
As the backlash continues over Bank of America's new debit card fee, the acting head of the Consumer Financial Protection Bureau called for more disclosure about what customers pay for checking accounts. Raj Date, the Obama administration advisor leading the agency until it gets a Senate-confirmed director, weighed in on the controversy Wednesday without directly addressing BofA's new $5 monthly debit card fee. Instead, Date said banks often are unclear about how much they charge customers for various services, and he suggested the agency might move to simplify checking account disclosures.
October 6, 2011
Pity the poor megabanks. One minute the federal government was pumping money onto their balance sheets to rescue them from the calamitous failure of Lehman Bros., the next it was draining billions of dollars from their revenues by slashing the fees they collected from customers for overdrafts and from retailers for debit-card transactions. Some banks are responding with new fees for services that used to be free, such as checking accounts and debit-card purchases. Bank of America, for example, plans to charge customers $5 in any month they use their debit cards to make even a single purchase.
October 3, 2011
Greed isn't good Re "Settling in on Wall Street," Sept. 30 The article says these protesters have no clear agenda. It seems crystal clear that they are frustrated by the lack of concern for the people in this country who need jobs and hope. Millions of people looking for work in this country are being ignored and slowly erased by mega-corporations whose obscene profits far exceed anyone's understanding. The beauty and tradition of America allow people to unite and make noise to draw attention to these huge injustices.
September 30, 2011
Bank of America's debit-card fee at a glance • Customers will pay $5 each month they use a debit card for a purchase • No charge for using BofA automated teller machines • Fee to be phased in starting early next year • Doesn't apply to customers with, for instance, a BofA mortgage or $20,000 in combined BofA and Merrill Lynch accounts Source: Bank of America
September 30, 2011 |
New federal debit card rules won't kick in until Saturday. But Bank of America wasted no time in announcing a $5 monthly fee for debit card purchases to make up for the expected drop in revenue. The rules in question limit how much banks can charge to process debit card transactions. Those fees now average 44 cents per sale and are paid by merchants. After Saturday, banks won't be able to charge more than 21 cents. The Federal Reserve has determined that this is a "reasonable and proportional" amount, reflecting how much it actually costs banks to process a debit card transaction.
September 30, 2011 |
Bank of America Corp. will charge customers $5 a month when they use debit cards to make purchases, a move likely to be followed by other banks as new federal regulations limit their ability to pinch consumers with big fees for overdrafts and late credit-card payments. Debit cards have been promoted for years as a free and easy way to pay for goods and services. But the costs of using those cards were offset in part by the lucrative fees banks reaped from other services and penalties — and which are now being limited by the Dodd-Frank Wall Street Reform and Consumer Protection Act. Those restrictions include reductions of nearly 50% on so-called swipe charges to merchants who accept debit cards, a change that is slashing the industry's revenue by $6.6 billion a year, according to one study.