Story from Here and Now. Listen to audio above for full report.
Bank of America announced Thursday that starting next year, it will begin charging a $5 monthly fee for customers who use their debit cards. And customers are already taking out their frustration.
On Twitter, Peter Skeritt wrote “Well. looks like I’ll be closing my Bank of America account before the year is out. Fees mean more revenue only if you have customers.”
Bank of America spokeswoman Anne Pace defended BOA’s move, saying that “the economics of offering a debit card have changed.”
The announcement comes days before a provision of the Dodd-Frank financial overhaul bill called the “Durbin Amendment” takes effect. That rule limits the fees that banks can charge merchants every time a customer uses a debit card for a purchase. And The New York Times reports that Javelin Strategy and Research estimates the new rule would reduce revenue for banks by about $6.6 billion a year.
The Bank of America website’s homepage crashed today, but it’s not known whether the technical issue was related to the bank’s announcement.
Read more on the Here and Now website.
———————————————-
“Here and Now” is an essential midday news magazine for those who want the latest news and expanded conversation on today’s hot-button topics.
We want to hear your feedback so we can keep improving our website, theworld.org. Please fill out this quick survey and let us know your thoughts (your answers will be anonymous). Thanks for your time!