BOA Charging $5 on Debit Cards - Thank you Democrats - you F'ng Morons

[Soul Crusher]

The Dick Durbin Bank Fees
WSJ ^ | SEPTEMBER 29, 2011 | TODD ZYWICKI



This Saturday, government price controls on debit card interchange fees (which card issuers charge to merchants) go into effect. The controls are the result of the Durbin amendment to last year's Dodd-Frank financial reform legislation. They were enacted at the behest of big-box retailers such as Wal-Mart and Walgreen's, which stand to gain a multimillion-dollar windfall. But the controls are already transforming the retail banking landscape.

The Durbin amendment tasked the Federal Reserve with establishing the allowable maximum interchange fees. It originally intended to slash them by 70%-80%. In response to a firestorm of criticism, the Fed cut the fees about in half, to about 24 cents per transaction from an average of 44 cents per transaction, including a one-penny allowance for fraud prevention. The new fee limits apply to any bank with more than $10 billion in assets.

Faced with a dramatic cut in revenues (estimated to be $6.6 billion by Javelin Strategy & Research, a global financial services consultancy), banks have already imposed new monthly maintenance fees—usually from $36 to $60 per year—on standard checking and debit-card accounts, as well as new or higher fees on particular bank services. While wealthier consumers have avoided many of these new fees—for example, by maintaining a sufficiently high minimum balance—a Bankrate survey released this week reported that only 45% of traditional checking accounts are free, down from 75% in two years.

Some consumers who previously banked for free will be unable or unwilling to pay these fees merely for the privilege of a bank account. As many as one million individuals will drop out of the mainstream banking system and turn to check cashers, pawn shops and high-fee prepaid cards, according to an estimate earlier this year by economists David Evans, Robert Litan and Richard Schmalensee. (Their study was supported...


(Excerpt) Read more at online.wsj.com ...


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[Soul Crusher]

BUMP for Team KENYA! ! !  ! ! 

Helping the little guy right you pieces of shit? 

[Vince G, CSN MFT]

The Dick Durbin Bank Fees
WSJ ^ | SEPTEMBER 29, 2011 | TODD ZYWICKI



This Saturday, government price controls on debit card interchange fees (which card issuers charge to merchants) go into effect. The controls are the result of the Durbin amendment to last year's Dodd-Frank financial reform legislation. They were enacted at the behest of big-box retailers such as Wal-Mart and Walgreen's, which stand to gain a multimillion-dollar windfall. But the controls are already transforming the retail banking landscape.

The Durbin amendment tasked the Federal Reserve with establishing the allowable maximum interchange fees. It originally intended to slash them by 70%-80%. In response to a firestorm of criticism, the Fed cut the fees about in half, to about 24 cents per transaction from an average of 44 cents per transaction, including a one-penny allowance for fraud prevention. The new fee limits apply to any bank with more than $10 billion in assets.

Faced with a dramatic cut in revenues (estimated to be $6.6 billion by Javelin Strategy & Research, a global financial services consultancy), banks have already imposed new monthly maintenance fees—usually from $36 to $60 per year—on standard checking and debit-card accounts, as well as new or higher fees on particular bank services. While wealthier consumers have avoided many of these new fees—for example, by maintaining a sufficiently high minimum balance—a Bankrate survey released this week reported that only 45% of traditional checking accounts are free, down from 75% in two years.

Some consumers who previously banked for free will be unable or unwilling to pay these fees merely for the privilege of a bank account. As many as one million individuals will drop out of the mainstream banking system and turn to check cashers, pawn shops and high-fee prepaid cards, according to an estimate earlier this year by economists David Evans, Robert Litan and Richard Schmalensee. (Their study was supported...


(Excerpt) Read more at online.wsj.com ...


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So you blame Obama and the Democrats for Bank of America raising fees???  Fact of the matter is that they were going to do it anyway because they are no longer cashing in on ATM fees due to businesses accepting debit cards.  

BOA or any other banks doesn't see people as customers, they simply see us as cash cows...and they don't give a shit if they take us cows out to the slaughter.  


BTW, I use Wells Fargo so I could care less.....for now

[Soul Crusher]

Oh fucking please.   BOA came straigh out and said that this new regulation that the communists put in is going to be offset by customer fees.

Another example of the communist democrats helping the small guy right moron? 

[Hugo Chavez]

So you blame Obama and the Democrats for Bank of America raising fees???  Fact of the matter is that they were going to do it anyway because they are no longer cashing in on ATM fees due to businesses accepting debit cards.  

BOA or any other banks doesn't see people as customers, they simply see us as cash cows...and they don't give a shit if they take us cows out to the slaughter.  


BTW, I use Wells Fargo so I could care less.....for now

wells fargo is worse, they'll probably charge 10 bucks or more after BOA did it.

[Soul Crusher]

Debit Durbin
American Spectator ^ | 9-30-11 | John Berlau



As I detailed here in February in "Dick Durbin Is Stealing Your Free Checking," thanks to price controls on debit card transactions from the Durbin Amendment of the 2010 Dodd-Frank "financial reform" law, free checking is going the way of the dodo bird. The Durbin price controls on interchange fees -- the so-called "swipe fees" that retailers pay to bank and credit unions that process debit card transactions, go into effect this Saturday, October 1, and are already showing more dire effects than originally predicted. Not only is free checking disappearing at a rapid pace -- a new Bankrate.com survey detailed in USA Today found that only 45% of non-interest bank checking accounts are free, down from 65% in 2010 and 76% two years ago, and that the average monthly fee for non-interest checking accounts is $4.37, up 75 percent from last year -- but ordinary Americans will soon be hit by new monthly fees for using their debit cards. And new evidence shows that the price controls may be causing thousands of job losses as well.


(Excerpt) Read more at spectator.org ...



________________________ ________________________ ____


Good job you democrat morons.   Typical results from the warped belief system you fools buy in to. 

[kcballer]

There is more than one way to bank.  If someone is willing to pay $5 then so be it.  You are making the assumption that Americans are stupid and can not make a decision about whether the $5 is worth it or not. 

[Vince G, CSN MFT]

wells fargo is worse, they'll probably charge 10 bucks or more after BOA did it.

Oh wait, just got a letter stating that they are going to charge 3 dollars a month.  That "for now" didn't last too long

[Vince G, CSN MFT]

Oh fucking please.   BOA came straigh out and said that this new regulation that the communists put in is going to be offset by customer fees.

Another example of the communist democrats helping the small guy right moron? 

Even if those regulation were not imposed, BOA still would have hit everyone up with these fees anyway.  That's what banks do....they simply take, take, and take.  They can blame someone else but banks have been screwing over people for decades.  They don't give a shit about you or me or anyone else.

[The True Adonis]

Free Market working its magic.

[Soul Crusher]

Free Market working its magic.

Dodd Frank is not Free market - its Democrat BS as always.   

[The True Adonis]

Dodd Frank is not Free market - its Democrat BS as always.   

Right. Because its not Bank Of America`s fault for wanting to make more profit just like its not the Health Insurance companies fault for denying Health Coverage. 

[Soul Crusher]

Right. Because its not Bank Of America`s fault for wanting to make more profit just like its not the Health Insurance companies fault for denying Health Coverage. 

Free Market does not involve hacks like Durbin getting in the middle of fee disputes between banks and card companies resulting in higher fees to consumers.   That's called Democrat bullshit - not free market. 

[Straw Man]

the legislation doesn't apply to bank with smaller asset base ( I think it's < 10 billion) or something

anyone is free to shop around for lower rates and fees

frankly, I dont't know why anyone would do business with BofA

Anyone who doesn't understand that banks are out to charge you fees for anything and everything that they can is just uninformed

Banks have been looking to increase "fee based income" for the last few years

nothing new here

[240 is Back]

i don't get it.

if you don't like it, change banks.

[Fury]

People still have bank accounts with BOA? They've been a zombie bank for a while. Look how desperate for capital they are.

[Soul Crusher]

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Thank Dodd-Frank For That Fee
IBD Editorials ^ | September 30, 2011 | Staff
Posted on September 30, 2011 8:18:31 PM EDT by Kaslin

Politics: Damned as an "outrage" in the press, Bank of America's just-announced $5 monthly fee for ATM use was a logical and predictable result of a Dodd- Frank financial bill that fixed prices. Guess who gets to pay for it?

Throwing their weight around at the height of the banking crisis, House Financial Services Chairman Barney Frank of Massachusetts and Sen. Chris Dodd of Connecticut vowed to stick it to banks. They blamed them for the mess to cover up the fact that they forced banks to lend to favored constituencies who could not repay.

The two Democrats pushed through the much-vaunted Wall Street Reform and Consumer Protection Act, which President Obama signed and touted as one of the signature accomplishments of his presidency.

That act, which included a micromanaging amendment on fees, carried a $2.9 billion implementation cost for that alone over five years, according to the Government Accountability Office.

It was nothing but the same old pandering to special interests. Named after Illinois Democratic Sen. Dick Durbin, the amendment limited fees that banks can collect from sellers when their customers make debit card purchases — cutting 44 cent fees to 21 cents.

That little bomb is now why battered Bank of America has no choice but to impose a $5 monthly fee — $60 a year — to consumers to make up for lost revenue.

The "economics of offering a debit card have changed with recent regulations," a bank spokeswoman told ABC News Friday.

BofA says it stands to lose $2 billion from the arbitrary Durbin price-fixing amendment and now has no choice but to make up for the lost revenue some other way.

(Excerpt) Read more at investors.com ...







Helping the little guy right you demo marxists?   

[Straw Man]

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Thank Dodd-Frank For That Fee
IBD Editorials ^ | September 30, 2011 | Staff
Posted on September 30, 2011 8:18:31 PM EDT by Kaslin

Politics: Damned as an "outrage" in the press, Bank of America's just-announced $5 monthly fee for ATM use was a logical and predictable result of a Dodd- Frank financial bill that fixed prices. Guess who gets to pay for it?

Throwing their weight around at the height of the banking crisis, House Financial Services Chairman Barney Frank of Massachusetts and Sen. Chris Dodd of Connecticut vowed to stick it to banks. They blamed them for the mess to cover up the fact that they forced banks to lend to favored constituencies who could not repay.

The two Democrats pushed through the much-vaunted Wall Street Reform and Consumer Protection Act, which President Obama signed and touted as one of the signature accomplishments of his presidency.

That act, which included a micromanaging amendment on fees, carried a $2.9 billion implementation cost for that alone over five years, according to the Government Accountability Office.

It was nothing but the same old pandering to special interests. Named after Illinois Democratic Sen. Dick Durbin, the amendment limited fees that banks can collect from sellers when their customers make debit card purchases — cutting 44 cent fees to 21 cents.

That little bomb is now why battered Bank of America has no choice but to impose a $5 monthly fee — $60 a year — to consumers to make up for lost revenue.

The "economics of offering a debit card have changed with recent regulations," a bank spokeswoman told ABC News Friday.

BofA says it stands to lose $2 billion from the arbitrary Durbin price-fixing amendment and now has no choice but to make up for the lost revenue some other way.

(Excerpt) Read more at investors.com ...

Helping the little guy right you demo marxists?  

333 - your point is that this is Obama/Dems fault ?

[Soul Crusher]

333 - your point is that this is Obama/Dems fault ?

1000000 percent, and will be followed by most other banks.

[Straw Man]

1000000 percent, and will be followed by most other banks.

I'm sure there wil be many banks, credit unions, etc.. who will continue to have no fee or a lower fee

BofA is just trying to replace income they used to charge to merchants and the legislation doesn't apply to smaller banks and ANY bank can choose not try to recapture the lost merchant revenue from the customer

The announcement comes after legislation was passed last year to regulate the financial industry. One provision directed the Federal Reserve to cap so-called swipe fees that banks could charge merchants when customers use debit cards. The Fed set that cap at 21 cents per transaction, which will go into effect tomorrow. That's a big cut from the previous average of 44 cents per transaction, fees that yielded $19 billion for banks in 2009

http://www.pbs.org/newshour/bb/business/july-dec11/bankfees_09-30.html

[Hugo Chavez]

Oh wait, just got a letter stating that they are going to charge 3 dollars a month.  That "for now" didn't last too long

yea, got that too and that's just the a pilot program.  They'll at least do 5 if not more later.

[Soul Crusher]

www.chicagotribune.com/news/opinion/editorials/ct-edit-durbin-20111001,0,6136347.story

chicagotribune.com
Get ready to pay the Durbin Fee
What happens when government picks who will profit
October 1, 2011


 
 
Sen. Dick Durbin must be forgetting that once you've dug yourself into a deep hole, you'd best stop shoveling.

How else to explain the Illinois Democrat's blustery reaction to the $5 a month that Bank of America Corp. plans to charge some of its customers who use debit cards? The charge, which other banks are likely to adopt, is a direct result of his lawmaking. Call it the Durbin Fee.

Last year, Durbin pushed an amendment to the Dodd-Frank financial regulation package that imposes a sharp cut in interchange fees, which banks charge retailers every time a customer swipes a bank debit card to buy something. That rule goes into effect Saturday. In essence, this strips money from banks and hands it to retailers, who will pay sharply lower fees. There's no guarantee that retailers will pass the savings on to customers.

Bankers told Durbin and his fellow lawmakers last year that the interchange fees subsidize free checking accounts and other services, including the convenient practice of making purchases with debit cards at no charge to the buyer. Slash fees to retailers, the banks said, and they would likely recoup the lost revenue by charging their customers for use of the cards. That's exactly what's happening now.

Durbin claimed that a cut in interchange fees would translate into lower prices and better service at Walmart and 7-Eleven. Funny, but no one's handed us a free Slurpee yet. In fact, the chief financial officer of Home Depot told Wall Street analysts in a conference call earlier this year that she expected Durbin's efforts to result in a $35 million annual "benefit" to the retailer.

Having picked sides in a high-stakes business deal—retailers over banks—Durbin denounced Bank of America for the widely telegraphed result. "Bank of America is trying to find new ways to pad its profits by sticking it to its customers," he said.

Shockingly, banks seek to be profitable. Durbin sought to transfer some profits from banks to retailers. The banks are trying to recoup the lost earnings.

Result of the government intervention: Retailers win, banks lose, and you get to pay the Durbin Fee.


Copyright © 2011, Chicago Tribune







DEMOCRAT  =  FUCKING OVER AVERAGE GUY IN THE NAME OF "FAIRNESS" 

[Soul Crusher]

Citibank hits checking accounts with fee
UPI ^ | 10/1/11



U.S. banking giant Citigroup Inc. said this week it would charge $15 per month for checking account holders who kept a balance below $6,000.

The firm's move comes on the heels of Bank of America's announcement this week that it would charge $5 for most debit card holders and sparked at least one desertion, the Los Angeles Times reported Saturday.

Cheryl Holt of Burbank, Calif., said she was "on my way out the door right now … off to start a new account at my nearest credit union."

"Should have done it years before," she added.

Holt said she received a letter with an "absurd salutation," that said, "Customers like you have told us that what they want from their banks are simple options and great rewards. We heard you and are writing to let you know that we are making some changes to your EZ Checking Package."

That said, the bank dropped the $180 per year bomb.


(Excerpt) Read more at dalje.com ...





THANK YOU DEMOCRATS - YOU PIECES OF GARBAGE.   

[Straw Man]

333 - the legislation doesn't apply to smaller banks so move your account and STFU

I've told you many times the banking legislation sucks but your constant bitching and moaning is pathetic

[tu_holmes]

This is capitalism at its finest.

The creative company will always increase revenue.