Bank of America tried to institute a $5 per month charge for debit card customers last year, but the move turned out to be a disaster. B of A eventually scrapped plans to charge the fee, but the damage was done: customers got angry about a fee they believed was unfair.
Bank of America executives revealed that account closings surged 20% above expectations at the end of 2011 -- shortly after the monthly fee proposal made headlines. Their timing could not have been worse; Bank Transfer Day, November 5th 2011, was a popular movement designed to get consumers to transfer accounts to credit unions.
Banks have learned that they'll have to either deal with leaner times or find other ways to increase revenue. Broad based fee increases only send customers off to the competition.
Further reading:
- Bank Of America Debit Card Fiasco Resulted In 20% Jump In Closed Accounts
- How to Find a Credit Union
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