NEW YORK (AP)-After a strong public reaction, Bank of America and other banks have retreated debit card fees charging monthly.
This is a victory for an irate customer and consumer advocates. But the move would be costly for the banks. They are struggling for ideas on how to make up for loss of income at a time when interest rates under the rocks and there is little demand for loans, traditional sources of making profits for the bank.
The Bank may in order to avoid any fees or UNF jacking introduce others new to fear of stoking anger is more common. Most major banks have been getting rid of free checking this year and increased average monthly cost of $ 10 for an account. They also cost $ 2 and $ 3 for services such as printed statements and canceled checks.
$ 5 monthly fee debit cards the Bank of America Corp. announced on September 29 became a flashpoint for anger "Occupy" protesters nationwide. There is also a growing movement among consumers to transfer accounts from major banks to credit unions and community banks.
Customers moving to at least $ 4.5 billion to credit unions in the last four weeks. At least 650,000 subscribers join credit unions since 29 September, when the Bank of America announced the charges, according to the Credit Union National Association, a group advocating for 7,400 credit unions.