Bank of America

So crappy/ dumb

Switching to smaller banks and credit unions might not help.

The $5 fee, as well as all the other fees other banks are testing, is from the Durbin Amendment, which largely capped the fees that banks can charge businesses for processing debit card information.

It was a good thing for small businesses, as they don't have to pay those fees to the banks anymore.

But, because the businesses are not paying anymore, the customer has to pay. In a theoretical world, the businesses would have dropped their prices a certain percentage to match the fees they are no longer paying, but that's not really how our markets work.

The larger banks are implementing the fees early to appease share holders and buffer the impact of not collecting those fees from businesses. The credit unions and small banks can probably hold out a lot longer on charging debit card usage fees, because they're either not concerned with profit nearly as much or operating as a not-for-profit, but they'll still have to charge eventually to make up those costs.

I didn't realize it was directly related to that Whale, although I'd hear it was related to the recent regulatory changes.

I would consider a credit union sometime in the future (ie: when I have enough money that it might be worth my time to switch). But right now BoA's massive number of locations is a huge plus since I split my time between Boston and NJ.

BU Engineering 2012

agentwhale007 wrote:

The credit unions and small banks can probably hold out a lot longer on charging debit card usage fees, because they're either not concerned with profit nearly as much or operating as a not-for-profit, but they'll still have to charge eventually to make up those costs.

Nope, banks with under 10 billion in holdings are exempt from the new fees.

Don't blame me, I voted for Kodos.

agentwhale007 wrote:

mbro wrote:

Nope,

Chuck Testa?

banks with under 10 billion in holdings are exempt from the new fees.

I wasn't aware there were "fees" as a part of the regulation, just that banks couldn't charge businesses for debit processing.

Then again I haven't read the actual thing so I'm probably wrong.

The regulation lowered what big banks could charge, smaller banks can still charge the 44 cents.

Don't blame me, I voted for Kodos.

I've got Wells Fargo. No major gripes thus far.

Evil Elvis: "Detrevni is definally like a hillbilly hippy from hell"

After dealing with two large scale banks that tried every conceivable way (including not adhering to GAAP standards) to screw me out of my money that I had entrusted to them, I went back to banking locally. I've got a live person 24-7 to answer any questions I have. The branch managers have power to take care of virtually ANYTHING without having to go higher up the chain of command, I'm issued a debit card on-the-spot whenever my old one goes bad, or I set up a new account. I'm not charged for their, or any other, ATMs. No minimum balance required, I get VISA rewards for using my debit card, the list goes on and on.

I just closed my last account with Wells Fargo last month. They purchased my bank around the same time as the TARP bailout. My bank had free checking, no ATM fees no matter where the card was used, and they had an automated coin counting machine at every branch. My bank also had great customer service. After Wells Fargo bought the bank, those perks disappeared.

Face it guys, common sense is a form of wealth and we're surrounded by poverty.-Strato