I was wrong.
There, I said it.
I was absolutely convinced that Bank of America‘s plan to charge its own customers fees for using their own debit cards would stick. I was also convinced that Bank of America’s competitors, Chase and Wells Fargo, would jump on the customer gouging bandwagon. After all, it’s happened before, with fees to withdraw from ATMs and fees for not maintaining a significant balance, and each time, customers have reluctantly gotten used to it.
Apparently, not this time.
The backlash from Bank of America’s scheme to pass along increased compliance costs to its customers by charging a $5 monthly fee – which they tried to spin as a tax – was enormous. Angry customers took their accounts elsewhere. Others took to the web to protest what was viewed as yet another step by those “too big to fail” banks to make the rich, richer and well, everyone else, poorer.
And a quite remarkable thing happened.
The big banks listened. And they changed course.
Now, Chase and Wells Fargo have announced that they will not impose fees on customers who use their debit cards. And reportedly, Bank of America is considering “options” for its customers in an effort to avoid the fee.
The man behind much of the debate, Sen. Dick Durbin (D-IL), who is responsible for the so-called “Durbin Amendment” which increased affected banks which offered debit cards, encouraged customers to “vote with their feet” and leave. And customers did.
So it’s over. Maybe.
I am, however, a bit skeptical. Those increased banking regulations haven’t gone away. And remember, banks aren’t charities. They’re businesses. They’re going to find a way to make up those anticipated losses from the Durbin regs one way or another. It just won’t, apparently, involve debit card fees.
