BofA ditches debit card fee plan

BofA ditches debit card fee plan

Bank of America has become the latest US financial institution to cancel plans to introduce monthly fees for debit card users.

In September BofA said that from the beginning of next year it would levy a $5 fee on some current accounts in months when cards were used to make purchases.

The plan was revealed just days before the Durbin amendment to Dodd-Frank came into effect, capping interchange fees at 21 cents per transaction, around half previous average.

Bank of America was following the lead of Wells Fargo and JP Morgan Chase which had both begun piloting similar debit card fees in a bid to claw back revenues hit by Durbin.

However, following a public backlash, last week both Wells Fargo and JP Morgan Chase shelved their trials while two smaller banks, SunTrust and Regions Financial, have also given up on fees.

BofA has again followed suit, with co-COO David Darnell explaining: "We have listened to our customers very closely over the last few weeks and recognise their concern with our proposed debit usage fee. Our customers' voices are most important to us. As a result, we are not currently charging the fee and will not be moving forward with any additional plans to do so."

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