Bank of America will start charging debit-card users $5 a month to pay for purchases. The move comes as the cards increasingly replace cash and as banks look for ways to offset the loss of revenue from a new rule that will limit how much they can collect from merchants.
It doesn't sound like a winning plan to me, but, what do I know?They must think it makes sense to tap those that are still paying their bills. Perhaps they are the only customers B of A has left, except, that is, those with Countrywide loans that they are foreclosing on. I would stop using the debit card as soon as I received the notice. But, maybe the other banks will quickly follow suit, if they sense this is the remaining golden goose.
Update: The reasons here suddenly became clear. The Dodd – Frank legislation limited the amount the banks could charge for credit card fees. So, they will make up the difference somewhere else. No matter what the politicians do, they nearly always make something worse.
Read the article: http://finance.yahoo.com/news/More-bad-news-for-bank-apf-1381425092.html?x=0&sec=topStories&pos=main&asset=&ccode=