Bank of America joins list of banks dropping new debit card fees

Faced with an uproar from customers and threats of an exodus, Bank of America Corp. announced today it’s scrapping its plan to charge a $5 monthly fee for debit card use. The about-face comes as customers petitioned the bank and mobilized to close their accounts and take their business elsewhere. The outcry had already prompted other major banks, including JPMorgan Chase & Co. and Wells Fargo & Co., to cancel tests of similar debit card fees last week. SunTrust Banks and Regions Bank followed suit on Monday. The retreat by the banking industry on debit fees comes amid growing public anger over higher bank fees. The banking industry’s retreat from a debit card fee doesn’t mean customers aren’t seeing higher fees elsewhere, however. This past spring, for example, Bank of America raised the monthly fee on its basic checking account to $12, from $8.95. The Charlotte, N.C.-based bank is also testing a new menu of checking accounts with monthly fees ranging from $6 to $25 in Arizona, Georgia and Massachusetts. Other, smaller fees may be nicking away at customer accounts as well. In September, the bank instituted a $5 fee to replace debit cards, with overnight rush delivery costing $20. Both services had previously been free. Other banks have instituted similar account and service changes. Read the full article from The Associated Press here.