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Banks feel backlash over debit fee proposal

November 15, 2011

One of the major reasons for Bank of America and other financial institutions reneging on plans to impose a $5 monthly fee on debit card users was based on major negative feedback from customers.

One of the major reasons for Bank of America and other financial institutions reneging on plans to impose a $5 monthly fee on debit card users was based on major negative feedback from customers. With the rise of social media, many citizens have been able to make their voices heard and see changes happen in the merchant services-related sector.

And while current banking customers were likely relieved with the major banks’ backtracking, it hasn’t stopped many from switching their bank accounts to local credit unions instead. According to Ben Malik, vice president of Florida Bank of Commerce, the uptick has been substantial.

“We’re seeing a migration from the larger institutions over to us,” said Malik in an interview with Florida Today. “We’re probably 25 percent ahead of last year (in new customers), most of it a migration from commercial institutions.”

While they will not charge fees to use the debit card program, Bank of America will be imposing other fees on consumers. For example, Business Insider reports that BofA will charge customers $5 to replace a lost debit card and $20 for those who want the card rushed to them.

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