News

Bank of America cancels monthly debit fee program

November 1, 2011

According to Forbes.com, Bank of America is joining the ranks and eliminating its proposed $5 monthly debit card fee.

The bank made the announcement yesterday citing customer backlash as the reason it decided to eliminate the fee program.

"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's announcement follows similar announcements from Wells Fargo and JPMorgan Chase. Both banks had been testing debit fees and also called off any immediate plans to implement the fees.

Bank of America made the announcement in September that it would begin charging customers a $5 monthly fee for debit card use beginning in January. The move has been attributed to the Oct. 1 implementation of the Durbin Amendment, which places a cap on interchange fees. Banks, projecting significant losses in revenue as a result, have been exploring ways to recoup those losses.

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