Banks defend debit-card fees amid pressure from Washington

[alp227]

Source: The Washington Post

The banking industry on Tuesday defended a controversial new fee on debit cards as some Democrats called on consumers to abandon financial institutions that impose the charge.

Rep. Brad Miller (D-N.C.) introduced a bill that would make it easier for customers to close their accounts and prohibit banks from assessing fees for the process. Meanwhile, Sen. Richard J. Durbin (D-Ill.) sent a letter to community banks and credit unions in his home state urging them to “seize this competitive opportunity” to woo consumers away from larger institutions.

“Politicians may not have the highest approval ratings, but I don’t think Wall Street banks and credit cards do either,” Durbin said.

The debate centers on a $5 monthly fee that Bank of America plans to begin charging next year to customers with the most basic checking accounts who use their debit cards to shop. Though Bank of America is the first major bank to adopt the fee, Wells Fargo and Chase are testing the charge and some regional banks have already instituted it.

Read more: http://www.washingtonpost.com/business/economy/banks-defend-debit-card-fees-amid-pressure-from-washington/2011/10/04/gIQApU6rLL_story.html

[aquart]

1. Gotta keep that bonus money flowing.

Fucking thieves.

[ixion]

2. The Banks can go to hell.

It's time to change the definition of what a bank is, and what they do.

[Fool Count]

8. Not only that, but with banking being an essential part of

economic infrastructure, it is time for the government to provide all its citizens with a cheap and reliable non-profit public alternative to
rip-off of private for-profit banking.

[russspeakeasy]

3. Maybe, just maybe, if we had some decent regulations in place

these goddamn thieves wouldn't keep coming up with ways to suck people dry, $5 at a time.

[Xtraneous]

4. It's a trap

Well, not a trap exactly, but I'm sure the banks will be quite happy shedding their customers who would be charged those fees and the politicians will play right into the game for their corporate backers.

[SheilaT]

5. A fee to CLOSE an account?

I can't imagine such a thing. It's been about three years since I last closed an account, but I don't recall any fee being assessed.

[Samantha]

9. My doctor told me last month he was charged $75 to close an account

He is a Republican and he was ticked. I told him I never give banks a chance to charge me a fee. I just withdraw the money and wait until they send me begging letters to close the account. There is no balance from which to withhold a fee. I have done this for years and never had a problem. Last month, a good friend told me she was charged $15.00 to close an account.

Sam

[totodeinhere]

11. Just draw your account down to a one dollar balance and then walk away from it.

I don't see why that wouldn't work.

[jtrockville]

12. The account will incur fees for not meeting the minimum balance.

Eventually the bank will send you to a collection agency.

I did this inadvertently once. I closed an account (or at least I thought I did) which a bank named "Perpetual", which doesn't exist anymore. Apparently the teller made some sort of error, and left $0.01 in the account. The account began incurring fees at the rate of $20/month. I made many efforts to contact the bank - left countless messages that were ignored. After three months I got notice that they would send me to a collection agency.

So I gathered up the documentation I had that the account had been closed, sent a letter saying that my lawyer informed me they were committing fraud by charging fees on an account that was closed, and included a bill for $60 (2 hours of my time @ $30/hr.). I closed the letter by offering my continued assistance helping them correct their error, for which they would be billed at my hourly rate.

I mailed the letter on Friday. Got a call first thing Monday morning from the person who had ignored all the voice messages I'd left. She said they wouldn't need any more assistance from me to fix their error, and she'd look into paying the bill I sent.

I never did get reimbursed for my time, but they did finally stop bothering me.

But without documentation from the bank that the account is closed, you'll have to either pay the monthly fee or have your credit rating ruined for not paying it.

[totodeinhere]

13. Wouldn't that depend on the type of account you have?

Right now I have a free account that does not require a minimum balance. I realize that not everyone has an account like mine and in the current environment some banks are adding fees to accounts like mine.

[jtrockville]

14. Why walk away from an account like that?

The bank can change terms any time - which is the topic of this discussion (newly imposed fees). So if your bank begins charging fees on your account, and institutes a fee for closing your account, then walking away from a $1 balance won't work (unless you want to ruin your credit rating).

[totodeinhere]

16. There is a lot of advice in this thread to move accounts to either credit unions or community banks.

I was just suggesting a possibility that might not work in all cases for someone who for whatever reason might want to move their account. But all of your points are well taken.

[SheilaT]

17. Or let it sit idle for a month or so, until you are certain

every single check out there has cleared, then write a final check for the exact amount in the account, which simply tends to close it. Which is what I've done every time I've ever closed an account.

[rhett o rick]

6. If you are stupid enough to still have your money in one of the big 4 banks

you deserve what you get.

[shanti]

15. well

there are some who have no recourse (small town, few banking choices, etc.), so all of them aren't stupid. i cut bank of america loose years ago for a CU due to their continual gouging and haven't looked back!

[rhett o rick]

18. I will agree that stupid was not appropriate. What I should have said is that to continue to give

the big four banksters you business, if you have a choice, you are harming the movement.

The Revolution is Here.

[sarcasmo]

7. Good for Durbin, sounds like him and Miller are paying attention.

[dotymed]

10. REVOLUTION.

This is what OWS and October 6 are about, the corporate-not Democratic- control of America. The Peasants (we) are fed up.

[fascisthunter]

19. keep it up idiots

you just add more fuel to the fire... thanks!

[sarcasmo]

20. More fees create more rage.

[Devil_Fish]

21. I called my bank today and told them I would be closing my accounts because of this fee. NT

[sarcasmo]

22. Fleece the proles, always the # topic at any banker board meeting.

[sarcasmo]

23. Greedy corporations will always defend theft , which they call profits.