BofA debit fee plan led to 20% jump in closed accounts


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Submitted: Mon, 01/23/2012 - 6:16pm
Updated: Mon, 01/23/2012 - 6:20pm By:

By Susanna Kim and Matt Guttman
ABC News

The days of the easy fee grab may be coming to an end. Bank of America’s failed plan to impose a $5 monthly debit card fee led to a 20 percent increase in closed accounts in the last three months of 2011 and a public relations headache, which other companies may be keen to avoid.

Asked about the fee debacle in a conference call with investors last week, Bank of America CEO Brian Moynihan said, “So I’d say that yes, we had some impact from the $5 debit fee. That’s why we made a decision to reverse it.”

The incident may lead to companies thinking again before levying fees on services that have traditionally been free. Verizon Wireless canceled a $2 fee for single bill-pay transactions online or via telephone in December, just one day after the telecommunications company announced the fee.

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3 Comments

  • jim robertson says:

    Ken Lewis was probably the real master mind behind another BOA We stepped in it moment.

  • James says:

    Everyone that uses BofA would most likely love to jump ship. It is such a big hassle switching banks…when I started it was NCNB. The tellers have been the only thing keeping most of us customers. I wish I had been part of the 20%!!

  • Guest2020 says:

    Bank of America is a corporation in need of the Occupy movement. They are a bunch of crooks who don’t give a hoot about their customers. It wouldn’t hurt my feelings any if they lost all of their business and just went away.

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