Obama blasts Bank of America's new debit card fee

[babylonsister]

Obama blasts Bank of America's new debit card fee
By Peter Schroeder - 10/03/11 03:44 PM ET


President Obama joined fellow Democrats in blasting a new fee on debit card users announced by Bank of America, arguing that banks do not have an "inherent right" to a certain amount of profits.

The bank has come under a hail of criticism after it announced Friday it would begin charging debit card users $5 a month, with one Democrat even calling for customers to abandon the bank.

snip//

"You don’t have some inherent right just to get a certain amount of profit if your customers are being mistreated," he said in an interview with ABC News. "My hope is that you’re going to see a bunch of the banks saying to themselves, 'You know what, this is not good business practices.' "

Sen. Dick Durbin (D-Ill.), the primary backer of the measure, on Monday urged Bank of America customers to find a new place for their money.

“Bank of America customers, vote with your feet,” said Durbin. “Get the heck out of that bank. Find yourself a bank or a credit union that won’t gouge you with $5 a month and will still give you a debit card you can use every single day.”

more...

http://thehill.com/blogs/on-the-money/banking-financial-institutions/185157-obama-blasts-bank-of-americas-new-debit-card-fee

[Scurrilous]

1. K & R

:thumbsup:

[fascisthunter]

2. K&R

another smart move

[napoleon_in_rags]

3. I believe many banks have an "early withdrawal fee"

Which you are charged if you close your account within a certain period after opening it, puts a bit of a damper on customers leaving BofA or any others on a whim. But I must be the only person in the world who isn't that horrified at the monthly fee: In reality its a huge step UP from what's been going on in the past, where the profit comes from far shadier things with even less choice involved.

[Tesha]

5. "Early withdrawal fees" usually only apply to specialized accounts such as CDs.

It's a rare checking or savings account that has
any such fee.

(Well, you might have to return the free toaster.*)

Tesha


* Just showing my age here.

[napoleon_in_rags]

8. Not that rare, my checking account has one.

$25. Here is an article on it:
http://www.bankrate.com/finance/checking/the-final-fee-closing-an-account.aspx

[Tesha]

9. That article talks about a pretty limited time window for the fee.

It's really not that outrageous for a bank to charge
you a fee if you set up a checking acount and then
decide for no performance-related reason to close
it within (say) 90 days.

The article also suggests that if you're closing the
account "because of poor service", that you dispute
the closing fee.

Tesha

[Celebration]

4. ridiculous

Let banks do what they want as long as you ensure actual COMPETITION!!

We have the most concentrated banking industry that we have had in recent decades. Obama, get real, we are going to get screwed until we start enforcing antitrust laws.

[YellowCosmicSun]

6. I'm taking Durban's advice.

[stevenleser]

7. I'm going to call them up tomorrow and tell them...

the first month they charge me a fee is my last month banking there.

It's their call after that.

[Cali_Democrat]

10. OMG

[Trillo]

11. Has any "official" acknowledged the regressiveness of such a fee? nt

[bigwillq]

12. Good for Obama and Durbin

:thumbsup: