Like Netflix before them, three banks have opted to change course after the chorus of customer dissent against proposed changes got too loud. For Bank of America, the outrage at a $5-a-month debit card charge culminated in Joe Biden calling the move “incredibly tone deaf” (Joe Biden! Tone deaf!) and Barack Obama worrying publicly about customers being “mistreated” in the name of profits. Now Bank of America says their thinking on the issue is “evolving” based on what they call a “changing competitive marketplace.” Chase and Wells Fargo, which were both testing $3-per-month fees, are pulling back for now as well.
“Over the past couple of weeks, customer sentiment changed,” said a B of A spokesperson. But the New York Times reported that banks still need to make up for lost revenue, and therefore, even as they announced there would be no such fee for now, “no firm conclusions had been reached.”
Perhaps they could split their cash business and their credit business — the name Qwikster is available.
Bank of America nixes $5 debit card fee [Money Watch/CBS]
Bank of America Rethinking Debit Card Fee [NYT]