Bank of America consumers clinched victory over the $5 monthly fee for using debit cards.
Bank of America co-chief operating officer David Darnell announced foregoing the monthly debit card fees last November 1 after irate consumer Molly Katchpole of Washington, DC started an online petition calling for the bank to cease its unnecessary monthly charges.
America’s largest bank had to cancel the additional $5 charge when more than 300,000 consumers supported Katchpole’s petition on www.change.org calling to “reject any claims that this latest fee is somehow necessary.”
“The American people bailed out Bank of America during a financial crisis. You paid zero dollars in federal income tax last year. And now your bank is profiting, raking in $2 billion in profits last quarter alone,” Katchpole reminded Bank of America officials.
“How can you justify squeezing another $60 billion a year from your debit card customers? This is despicable,” Katchpole added.
Katchpole’s petition snowballed and Bank of America’s extra $5 fee for debit card usage was short-lived, which was first implemented late in September.
“We have listened to our customers very closely over the last few weeks and recognized their concern with our proposed debit usage fee,” Darnell said in a statement.
“Our customers’ voices are most important to us. As a result, we are not currently charging the fee and will not be moving forward with any additional plans to do so,” Darnell added.
Bank of America earlier defended its new policy. It claimed that the minimal $5 fee will help regain revenue loses with the passage of the Dodd-Frank Financial Regulation Bill, where its revenues in debit-swipe transactions were cut in half.
The vigilance of Katchpole and the more than 300,000 consumers online finally ended new bank policy that was also supposed to be replicated by Wells Fargo & Co. and J.P. Morgan Chase & Co.