Finance Globe

U.S. financial and economic topics from several finance writers.
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Big Banks Nix Plans to Increase Debit Card Fees

Several banks announced they will nix their plans to increase debit card fees in response to consumer outcry.

Wells Fargo said in a statement on Friday that they will cancel their five-state pilot program for a $3 a month debit card fee.

Ed Kadletz, head of Wells Fargo’s Debit and Prepaid Cards, said, “As we adjust to changes in our business, we will continue to stay attuned to what our customers want. This means understanding their needs as we continue to deliver the world-class service, convenience, and value they have come to expect from Wells Fargo.”

On Monday, Bank of America also backtracked on their plans to charge a $5 a month fee for using their debit card.

"We have listened to our customers very closely over the last few weeks and recognize their concern with our proposed debit usage fee," said David Darnell, co-chief operating officer. "Our customers' voices are most important to us. As a result, we are not currently charging the fee and will not be moving forward with any additional plans to do so."

Bank of America is one of the world’s largest financial institutions with 5,700 retail banking offices serving an estimated 58 million consumers and small businesses.

SunTrust, Regions, and Chase also decided to scrap their plans to charge debit card fees.

Though big banks changing their tune on debit card fees is a temporary win for consumers, the banks are going to need to make up the billions of dollars in lost revenue somehow - and new fees of some other sort are not out of the question.

A grass-roots organization has dubbed Saturday November 5th “bank transfer day” in a move to encourage consumers to switch to a credit union or a community bank, which are less likely to charge these kinds of fees.


Sources:
Bank of America
Wells Fargo
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Thursday, 24 October 2019

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