COMMENTARY | Bank of America Corp has decided to not charge its customers $5 per month for having a debit card. The second-largest bank in the United States decided against the fee after receiving negative feedback from account holders. Another reason why Bank of America changed its mind is due to other banks changing their plans to charge their customers monthly fees. Dissatisfaction with the bank has been observed through the numerous Occupy protests that have been held in numerous cities. For example, Occupy Miami took to chanting in front of a Bank of America to oppose the new fee. Also, most that attended the Occupy Miami rally stated that they would close their Bank of America accounts and go to another bank if the fee was not eliminated.
Bank of America planned to start enforcing the fees in the beginning of next year. Other banks were following Bank of America’s lead. The banks figured that charging the fees would help to recoup the money lost due to a law that cut the amount that they could charge to retailers when consumers swiped their cards. JPMorgan Chase & Co. and Wells Fargo Bank were doing test programs that charged customers monthly fees. Last week, they decided to cancel these programs. Suntrust and Regions Bank began to charge the fees, but decided to abandon their program earlier this week. Suntrust and Regions Bank also stated that they would reimburse their customers for the charges.
Bank of America held firm in their plans to start charging the fees until last week. The bank decided to give their customers ways to avoid being charged, e.g. being enrolled in direct deposit or maintaining a minimum balance in their account. Most individuals would find it difficult to abide by the above guidelines. There are many individuals who do not have a job or are only making ends meat. It may be difficult to have a direct deposit or to keep a minimum balance. Luckily for them, Bank of America made the right decision. If they did decide to charge the fees, I would be the first one in line to close my account.