Banks drop debit card fees in response to outcry as Nov 5 looms

As the public continues to react to proposed debit card fees the banks are taking notice. Bank of America is eliminating debit card fees. Other banks have already begun backing off. This morning, First Tennessee announced that it will not charged these fees even though it reported cost the company 'millions per year'.

This author was in touch with SunTrust bank @AskSunTrust assured her that the debit card fees would not be put into effect. The new $7.00 fees on checking accounts will stand. Customers who have a direct deposit or maintain a daily balance of $500 will be exempt from paying the new charges.

Banks claim that the fees were triggered by legislation enacted by congress. This agreement addressed debit cards but not credit cards. Read online about the Dodd Frank Act Durbin Agreement.

Customer outrage about the newly added fees is intense. It prompted Kristin Christian in California to promote the idea of Bank Transfer Day on Nov. 5. The idea is for consumers to compare options at credit unions and local banks.

Although the goal is similar to that of Occupy Wall Street the movement called Bank Transfer Day is not the same. Christian says it was conceived by 'a private citizen who had enough'. The Facebook page for Nov.Fifth says that the movement aims to promote growth within our communities. It encourages customers to shift their funds from large corporate banks into non-profit credit unions that support the community the serve.

Local banks and credit unions are reporting an increase in interest. Smaller community banks typically offer lower fees and claim to provide personalized customer service. In addition to lower fees customers may also benefit from bill pay, checking and savings account, financial planning and other services.

Credit unions are nonprofit organizations that are overseen by a board of directors. Credit unions are owned by members instead of stockholders. Membership is required. Fees can be nonexistent and when imposed are much less than that of traditional banks.

The lower cost and higher services is an option that appeals to many Americans. The outcry is forcing banks to pay attention. The dropped debit card fees are an indication that the banks are listening. On Nov. 5 the banks may end up listening a little more.