Bank of America Site Crashes, Day After $5 Debit Fee Rule

[kbrake]

I tend to think this will be a complete disaster for BOA and the other large banks will take note and scrap any future similar plans they may have had.

[JaxRed]

My recommendation of USAA (online) Bank stands..... they just confirmed that they are NOT imposing a debit card fee.

[oneupper]

Originally Posted by RedsManRick

I'm not sure I remember seeing an industry pull such a blatant "we're going to drastically raise our prices on you, not because of our costs but because we want to maintain a certain, quite high level of profitability." I mean, heck, it's completely their right to do so -- but I guess their seeing the market react.

Happens all the time. The Netflix unbundling (and price increase) was amply commented upon on this board. (Don't make me look for it).
I mentioned bag fees on airlines. (and seating and pre-boarding fees and....).
Ever been charged a "resort fee" at a hotel?
The list goes on...

[bucksfan2]

Originally Posted by RedsManRick

I'm not sure I remember seeing an industry pull such a blatant "we're going to drastically raise our prices on you, not because of our costs but because we want to maintain a certain, quite high level of profitability." I mean, heck, it's completely their right to do so -- but I guess their seeing the market react.

The Dodd Frank bill put limits on the amount of money banks can make. In essence they gave them a price increase. If costs rise the company will pass that on to the consumer, across every industry. Heck just last night I was talking with someone about how just a few years ago a Chipotle burrito was $4.75 and now it stands at $6.25. We don't hear people griping about that?

I think this is a bad move by BAC but it is also a move that has been rumored to be in the works for months now. I would move my money if my bank started to charge for use of a debit card. But I don't use my debit card for anything other than to withdraw cash from an ATM. I have had my credit card hacked before and I was able to get the charges taken off my statement. If someone hacks my debit card they can wipe out my account.

[cincinnati chili]

Free legal advice forthcoming:
If you are a compulsive spender, then it might make sense to use debit cards over credit cards (this is sort of like why compulsive eaters like myself don't keep junkfood in the house).

For everyone else, don't use a debit card; use a credit card. The way the Truth in Lending Act is set up, it's much, much easier to reverse a fraudulent credit card charge than fraudulent debit card charge. Simply review your bill every month before you pay it, and protest anything that looks fishy.

[Rojo]

Didn't see this over here.

I finally gave BofA the boot about a year ago after banking with them for 20 years. I went with the San Francisco Firefighters Credit Union. Great decision.

The SFCU not only doesn't charge me to use another ATM, they reimburse me any fee that other bank charges. I can use any ATM and know it's free.

I don't think moving to a "local" bank makes much different but moving to nonprofit credit union does.

Also, is Frank-Dodd responsible for the Netflix price hike?

[paulrichjr]

Originally Posted by RBA

And the "consumer" can just move on to a different bank or credit union.

GAC already said it but this should be moved...

OK here goes.....That is a very "free market", capitalistic idea you have there. Welcome to the dark side.

[Rojo]

NM