US Banking Industry: Public revolt gets results - Bank of America Backs Off From Plan to Charge Debit-Card Fee

Bank of America Corp., the second- biggest U.S. lender by deposits, abandoned plans to charge $5 a month for debit cards after a nationwide backlash from consumers and lawmakers. “For a lot of consumers, this was the last straw,” said Jean Ann Fox, director of financial services for the Washington- based Consumer Federation of America. “Banks have been making a lot of changes to accounts, adding fees and raising the minimum balance needed, and consumers were clear that they objected to one more fee.”

The bank canceled the fee, which would have started in January, afteras they said listening “to our customers very closely,” David Darnell, co-chief operating officer, said in a statement today. The lender also cited competitive pressure.

Bank of America reversed course after rivals including JPMorgan Chase & Co. and Wells Fargo & Co. decided against similar charges, leaving the Charlotte, North Carolina-based firm the only U.S. lender among the biggest five with plans to introduce the fee. Citigroup Inc. and U.S. Bancorp had already rejected the idea, while SunTrust Banks Inc. and Regions Financial Corp. eliminated their check-card fees yesterday.

Note EU-Digest: once again an example that Public Revolt will eventually have results against unfair business practices and corporate manipulation.

For more: Bank of America Backs Off From Plan to Charge Debit-Card Fee - BusinessWeek