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. 

SunTrust drops $5 debit card fee but is it enough

Good news blog readers! I received a tweet Tweet from SunTrust yesterday afternoon. The message is clear that SunTrust is dropping the $5 debit card fee. It was also announced on the SunTrust Facebook page that the bank is dropping the $5 debit card fee.

While this is very good news I have to wonder if it is enough. Will it keep customers or is the damage already done?

Opinions on the Facebook page are mixed. Now that SunTrust has dropped the $5.00 debit card fee some customers are willing to stay. Others are saying that the move is 'too little too late'. Several of the comments indicate that customers are looking into other options that they may have.

Even though SunTrust has dropped the $.5.00 debit card fee other fees still remain. Account holders who enjoy free checking now may have to pay $7.00 a month beginning November 10. The fee can be avoided by keeping a $500 minimum daily balance or by having a direct deposit. These are options that many people don't have.

I have been a loyal SunTrust customer for several years. Other than the bill pay system I've been pleased with the service overall. However, my credit union offers a green account option with no monthly fees. My puny little savings account has been there for a few years and I've been pleased with service at the credit union too.

Ultimately, my choice will probably come down to what I can afford. It's hard to justify paying nearly $100 a year for something that I can get for free elsewhere.

So, what's your opinion? What do you think about SunTrust dropping the $5.00 fee? Is it enough or are they still behind the curve? Share your thoughts in the comment section below.