Unintended Consequences, Bank of America to Charge $5/ Month to Use Debit Cards

[Lamarr]

Bank of America will Charge $5/month to Use Debit Cards

The nation's beleaguered banking industry, which has been raising fees and doing away with free services, has a new target: debit-card users.

Bank of America Corp. is laying plans to charge millions of customers a $5 monthly fee to use their debit cards, and other big banks are expected to follow suit. The industry says it needs the fees to recoup revenue it will lose because of new government regulations that cap what they can charge merchants for debit-card transactions.

Bank of America, the largest U.S. bank by assets, disclosed the plan on Thursday in a memo to its senior staff. It intends to begin collecting the fees nationwide early next year.


Several other large banks, including J.P. Morgan Chase & Co. and Wells Fargo & Co., are testing or plan to test similar fees in some states. Regions Financial Corp., a Birmingham, Ala.-based lender, has said it will start charging a $4 monthly debit-card usage fee on certain accounts on Oct. 1.

 

[Lamarr]

2 points I've been saying this for a while.......

1) Companies don't pay for the regulations, you (the consumer) pay!

2) Regulations prevent new entry into the marketplace.

In a free market, another bank could advertise no debit card fees and take most of B of A's biz, but as evidenced, the other banks are probably going in the same direction as B of A. We need to embrace the free market or these facists will continue to screw us

 

[QueEx]

2 points I've been saying this for a while.......

1) Companies don't pay for the regulations, you (the consumer) pay!

2) Regulations prevent new entry into the marketplace.

In a free market, another bank could advertise no debit card fees and take most of B of A's biz, but as evidenced, the other banks are probably going in the same direction as B of A. We need to embrace the free market or these facists will continue to screw us

Perhaps, you should ponder the "operative word" COULD.

Sure, if left alone: banks COULD do the right thing; the mining industry COULD do the right thing; the auto industry could do the right thing; and even humans (which, by the way are behind the industries just named) COULD do the right thing.

But, what does history tell you

 

[QueEx]

 

[nittie]

Bank of America will Charge $5/month to Use Debit Cards

The nation's beleaguered banking industry, which has been raising fees and doing away with free services, has a new target: debit-card users.

Bank of America Corp. is laying plans to charge millions of customers a $5 monthly fee to use their debit cards, and other big banks are expected to follow suit. The industry says it needs the fees to recoup revenue it will lose because of new government regulations that cap what they can charge merchants for debit-card transactions.

Bank of America, the largest U.S. bank by assets, disclosed the plan on Thursday in a memo to its senior staff. It intends to begin collecting the fees nationwide early next year.


Several other large banks, including J.P. Morgan Chase & Co. and Wells Fargo & Co., are testing or plan to test similar fees in some states. Regions Financial Corp., a Birmingham, Ala.-based lender, has said it will start charging a $4 monthly debit-card usage fee on certain accounts on Oct. 1.

This is like Nero and Rome burning...they [banks] just don't get it....the only thing they understand is pain and profits.

 

[Lamarr]

Perhaps, you should ponder the "operative word" COULD.

Sure, if left alone: banks COULD do the right thing; the mining industry COULD do the right thing; the auto industry could do the right thing; and even humans (which, by the way are behind the industries just named) COULD do the right thing.

But, what does history tell you

you are correct, they COULD do the right thing. Under the current regulatory structure, there is no incentive to do the right thing. (Too Big To Fail, remember) This is exactly why the "free market" would impose regulations on nefarious activity. A new competitor would emerge (ie. you, me & thought1) if we gave our community what they desired, they would leave B of A & any other bank who uses this flawed approach, in favor of our services.

THIS IS WHAT THE MARKET IS BEGGING FOR.....honest, moral & sound business practices! An informed public can be the greatest regulator. We have to trust "the people" in our communities instead of trusting DC.

The lust for "greed" must be counter-balanced by the risk of loss!

 

[QueEx]

What we have Lamar, is a disagreement of faith.

You have faith in and will simply leave it to the so-called free market system to do whats in my best interest (though there is no historical evidence to support your belief).

I have faith (and history is on my side) that if things are left unfettered to your free-market system, it will do what is in its own best interest to maximize itself and any benefit to me is incidental.

 

[SPECTRE1]

This is better than sneaking the fee into transactions with retailers which get passed on to consumers as higher prices.

Now that it is out in the open, you can switch up to another bank such as a credit union.

 

[thoughtone]

What we have Lamar, is a disagreement of faith.

You have faith in and will simply leave it to the so-called free market system to do whats in my best interest (though there is no historical evidence to support your belief).

I have faith (and history is on my side) that if things are left unfettered to your free-market system, it will do what is in its own best interest to maximize itself and any benefit to me is incidental.

You know that, I know that and you know Lamarr knows that. But he does have his quota of paid posts to fulfill. (capitalism at work)

 

[Lamarr]

What we have Lamar, is a disagreement of faith.

You have faith in and will simply leave it to the so-called free market system to do whats in my best interest (though there is no historical evidence to support your belief).

I've addressed this many times. Pres Harding didn't do a thing, and we were out of that situation in 18 months (free markets work!)

Why You've Never Heard of the Great Depression of 1920 | Thomas E. Woods, Jr.

The economic situation in 1920 was grim. By that year unemployment had jumped from 4 percent to nearly 12 percent, and GNP declined 17 percent. No wonder, then, that Secretary of Commerce Herbert Hoover — falsely characterized as a supporter of laissez-faire economics — urged President Harding to consider an array of interventions to turn the economy around. Hoover was ignored.

Instead of “fiscal stimulus,” Harding cut the government's budget nearly in half between 1920 and 1922. The rest of Harding's approach was equally laissez-faire. Tax rates were slashed for all income groups. The national debt was reduced by one-third. The Federal Reserve's activity, moreover, was hardly noticeable. As one economic historian puts it, “Despite the severity of the contraction, the Fed did not move to use its powers to turn the money supply around and fight the contraction.” By the late summer of 1921, signs of recovery were already visible. The following year, unemployment was back down to 6.7 percent and was only 2.4 percent by 1923.

<iframe width="560" height="315" src="http://www.youtube.com/embed/czcUmnsprQI" frameborder="0" allowfullscreen></iframe>

I have faith (and history is on my side) that if things are left unfettered to your free-market system, it will do what is in its own best interest to maximize itself and any benefit to me is incidental.

What history, the Weimar Republic?

 

[QueEx]

What history, the Weimar Republic?

The history is long and tragic and you don't have to leave our borders to witness it. And that history becomes clear and recent, for example, when one has to ask, "where are the anti-regulation/anti union now that another mine has exploded?"

That history, Lamar, is reflected in your own words when you said, "Gulf Oil Spill ‘Could Go Years’ If Not Dealt With" and we also learned that, Offshore rig blowout equipment often fails.

Moreover, I don't think I need to provide a citation to say that had the unregulated free-market had its way, we would have long ago become extinct by the killer-contraptions concocted by the auto industry, alone. I believe one of your own, Ralph Nader, would attest to that one?

 

[thoughtone]

I've addressed this many times. Pres Harding didn't do a thing, and we were out of that situation in 18 months (free markets work!)

Why You've Never Heard of the Great Depression of 1920 | Thomas E. Woods, Jr.



<IFRAME height=315 src="http://www.youtube.com/embed/czcUmnsprQI" frameBorder=0 width=560 allowfullscreen></IFRAME>



What history, the Weimar Republic?

Wow, talk about revisionism. By any measure Harding was one of the most corrupt presidents. In fact many have compared GW to Harding (Tea Pot Dome). Harding and Hoover caused the Great Depression and it is interesting that libertarians view his policies has something to emulate.

 

[deputy dawg]

My bank pays me when I use my debit card for purchases over $25. They've had this for a few years already.

Quarter Back® Checking
If you like to use your debit card to buy things, this is the free checking account for you! With Quarter Back® Checking, when you make a purchase of $25 or more with your debit card, we'll put a quarter back into your account. It'll add up fast - so open your Liberty Bank Quarter Back® Checking account today!

Lamarr?

 

[humble]

I am seriously considering putting my money in a credit union or local bank.