Bank of America Settles Overdraft Fee Lawsuit 410 million
- Thread starter Justin
- Start date
oh man ive had to sit down with BoFa a few times cuz of this shit where i was getting overdrafted a few times per session getting a abundance of fees due to this highest to lowest bullshit. im gonna see whats this lawsuit is about and hope that i dont have to have records of it to qualify for it. im still with BoFa b/c like some said, of its convenience. but really, whats the best bank to rely on to SAVE money?
i guess i dont have to do anything and just wait and see.
i guess i dont have to do anything and just wait and see.
Bank of America Corp plans to charge customers who use their debit cards to make purchases a $5 monthly fee beginning early next year, joining other banks scrambling for new sources of revenue.
U.S. banks have been looking for ways to increase revenue as regulations introduced since the financial crisis limited the use of overdraft and other fees.
The Dodd-Frank Act's Durbin amendment, due to go into effect on October 1, caps fees banks can charge merchants for processing debit card transactions at 21 cents per transaction from an average of 44 cents, potentially costing banks billions of dollars.
Banks also face broader operational challenges as low interest rates and higher capital requirements hit profitability, and the sluggish economy depresses loan demand.
Other large U.S. banks including Wells Fargo & Co, JPMorgan Chase & Co and SunTrust Banks Inc are testing or planning monthly debit card fees.
"The economics of offering a debit card have changed," Bank of America spokeswoman Anne Pace said on Thursday. Bank of America is the largest U.S. bank by assets.
Senator Richard Durbin, architect of debit card interchange fee reform, bashed the proposed monthly fee. "Bank of America is trying to find new ways to pad their profits by sticking it to its customers," he said in a statement. It's overt, unfair, and I hope their customers have the final say."
A FEE TOO FAR?
Even before introduction of the Durbin amendment's rules on debit fees, Bank of America's fee income was dropping at its deposits and card services units. The bank's deposits unit reported fee income of $1 billion in the second quarter of 2011, down 34 percent from $1.5 billion a year before.
Card services, which includes the bank's credit and debit card operations, reported fee income of $1.9 billion, down 23 percent from $2.5 billion in second quarter 2010.
"This might be a fee too far," said Ed Mierzwinski, director of the consumer program for the U.S. PIRG, a federation of state public interest research groups.
Mierzwinski said such fees could push customers to smaller banks that have not introduced checking and debit-related fees.
Pace said customers expect certain features for their accounts, like overdraft and fraud protection, and the fee would offset some of those costs.
The fee will be waived for the bank's premium or platinum privileges accounts tied to its Merrill Lynch brokerage. It will also not be charged for using the card to access the bank's ATMs, Pace said.
She declined to say how much the bank expects to earn through these fees or how many customers would be affected.
Some banks have pushed back against debit fees.
Citigroup Inc said earlier this month that it would not impose debit card usage fees as part of a broader account restructuring.
The head of banking products for Citi's U.S. consumer bank said customers had told the bank that a debit card fee would be "a huge source of irritation."
U.S. banks have been looking for ways to increase revenue as regulations introduced since the financial crisis limited the use of overdraft and other fees.
The Dodd-Frank Act's Durbin amendment, due to go into effect on October 1, caps fees banks can charge merchants for processing debit card transactions at 21 cents per transaction from an average of 44 cents, potentially costing banks billions of dollars.
Banks also face broader operational challenges as low interest rates and higher capital requirements hit profitability, and the sluggish economy depresses loan demand.
Other large U.S. banks including Wells Fargo & Co, JPMorgan Chase & Co and SunTrust Banks Inc are testing or planning monthly debit card fees.
"The economics of offering a debit card have changed," Bank of America spokeswoman Anne Pace said on Thursday. Bank of America is the largest U.S. bank by assets.
Senator Richard Durbin, architect of debit card interchange fee reform, bashed the proposed monthly fee. "Bank of America is trying to find new ways to pad their profits by sticking it to its customers," he said in a statement. It's overt, unfair, and I hope their customers have the final say."
A FEE TOO FAR?
Even before introduction of the Durbin amendment's rules on debit fees, Bank of America's fee income was dropping at its deposits and card services units. The bank's deposits unit reported fee income of $1 billion in the second quarter of 2011, down 34 percent from $1.5 billion a year before.
Card services, which includes the bank's credit and debit card operations, reported fee income of $1.9 billion, down 23 percent from $2.5 billion in second quarter 2010.
"This might be a fee too far," said Ed Mierzwinski, director of the consumer program for the U.S. PIRG, a federation of state public interest research groups.
Mierzwinski said such fees could push customers to smaller banks that have not introduced checking and debit-related fees.
Pace said customers expect certain features for their accounts, like overdraft and fraud protection, and the fee would offset some of those costs.
The fee will be waived for the bank's premium or platinum privileges accounts tied to its Merrill Lynch brokerage. It will also not be charged for using the card to access the bank's ATMs, Pace said.
She declined to say how much the bank expects to earn through these fees or how many customers would be affected.
Some banks have pushed back against debit fees.
Citigroup Inc said earlier this month that it would not impose debit card usage fees as part of a broader account restructuring.
The head of banking products for Citi's U.S. consumer bank said customers had told the bank that a debit card fee would be "a huge source of irritation."
i really could give a shit about money in general as long as im eating and sleeping good but these banks are playing a hellofagame; adertising all the wants and needs 2 da public and giving them a loan. this country is built on a payback. if i can recall, USA has spent more 2x of money on military vs. china and china is 2x the population. i really dont know what to think, but niggas out here is spoiled and i just wanna fuck bitches and get an education.
MAN YOU FOOLS WHO STILL FUCKIN WITH BOFA AND CHASE...SOME DUMB FUCKERS...CREDIT UNIONS BEEN THE WAY TO GO...AND THEY HAVE THE SAME AMOUNT OF ATMS AND AVAILABILITY AS THE BIG BANKS AND MINUS ALL THE FEE'S
REMEMBER THIS! A BANK IS OUT TO PROFIT FOR ITSELF... A CREDIT UNION IS NON PROFIT, AND WHATEVER PROFITS IT DOES MAKES GOES BACK...TO THE CUSTOMERS VIA A BETTER INTEREST RATE ON LOANS OR MONEY YOU HAVE BANKED THERE.
REMEMBER THIS! A BANK IS OUT TO PROFIT FOR ITSELF... A CREDIT UNION IS NON PROFIT, AND WHATEVER PROFITS IT DOES MAKES GOES BACK...TO THE CUSTOMERS VIA A BETTER INTEREST RATE ON LOANS OR MONEY YOU HAVE BANKED THERE.
GOOD LUCK ON THAT MAN...I HAD TO GO TO BOFA CAUSE THE GOVERMENTS PUNK ASS, RUNS UNEMPLOYMENT THROUGH THAT SHITTY BANK...THEY ISSUED ME AN ATM AND SO ONLINE I TRIED TO HAVE THEM DO A DIRECT DEPOSIT TO MY CREDIT UNION...THEY HELD MY SHIT UP FOR ABOUT A WEEK...I HAD TO GO DOWN THERE AND WITHDRAW MY MONEY...THEN SOME DUMB BUT FINE LOOKING BITCH,WHO WAS THE TELLER. KEPT TELLING ME THAT NOW THAT I WAS MEMBER I SHOULD JUST BANK WITH THEM AND DROP THE DIRECT DEPOSIT TO MY CREDIT UNION...I TRIED BEING NICE AND TOLD HER THAT I HAVE ALL MY CHECKS AND ATM WITH THE CREDIT UNION, SO EVERYTHING ELSE WOULD BE A HASSLE TO MOVE OVER...BUT SINCE I WAS MEMBER LIKE SHE SAID I WAS,I ASKED HER IF SHE COULD CASH A CHECK. THAT WAS FROM BOFA MY BOY WROTE ME OUT...THE BITCH SAID I WASNT REALLY AN OFFICIAL MEMBER AND IT WOULD COST 5 DOLLARS TO PROCESS THAT TRANSACTION...ALL OF A SUDDEN THE BITCH HAD AN ATTITUDE.
I LAUGHED AT HER ASS AND TOLD HER. THATS WHY I WOULD NEVER BANK AT THIS SHITTY ASS PLACE. IM A GO TO MY BANK AND CASH MY CHECK FOR FREE...TOLD HER TO HAVE A GREAT DAY AND STROLLED OUT...THEM EMPLOYEES ARE FUCKIN HUMANOIDS THERE.
I LAUGHED AT HER ASS AND TOLD HER. THATS WHY I WOULD NEVER BANK AT THIS SHITTY ASS PLACE. IM A GO TO MY BANK AND CASH MY CHECK FOR FREE...TOLD HER TO HAVE A GREAT DAY AND STROLLED OUT...THEM EMPLOYEES ARE FUCKIN HUMANOIDS THERE.