There has been a huge public outcry since BofA announced their latest fee for debit card users. The fee of $5/month does not seem like a lot, but $60/year can add up. Their website experienced problems for days after the announcement and customers have been expressing their disappointment and willingness to switch banks. Even a online petition is going and has over 100,000 signatures. So people are clearly making an issue out of the increase in fees, but BofA still isn’t listening.
Their CEO Brian Moynihan has defended the new fees, by saying that customers understood the bank right to make a profit. The bank wants people to believe that all the new regulations have hurt the bank’s ability to make a profit and new fees are in order. Raising fees and losing customers could do a lot more damage to that bottom line than the regulations are, if enough people begin moving their money. But if BofA will step back and examine themselves, they will see that the purchase of countrywide and their lack of interest in saving homes has probably taken a bigger chunk out of their bottom line than anything. The mortgage-backed securities crisis caused by the robo signings and lack of ability to prove ownership in homes has put BofA in the crosshairs of lawsuits and not just from the government. Investors can come calling as well, and BofA would not have the capital to survive. Solving this housing issue could go a long way to making that profit that BofA wants everyone to believe is the point of the new fees.
This following video highlights some of the issues with the new fees. For example, the new debit card fee will produce 15% more debit card fees for them than they made before increased regulation. This doesn’t include the $9/month fee that is being added to some checking accounts.
Bank of America is simply not listening, and they aren’t the only ones. Other big banks either have or will increase fees on accounts. So despite the #occupywallstreet anger that is out there, big banks still aren’t listening.