Big Banks Decide Against Debit Card Fees
Chase, Citigroup not following Bank of America's lead
By Mark Russell, Newser Staff
Posted Oct 28, 2011 6:26 AM CDT
In this Jan. 31, 2011 photo, Bank of America customers use ATMs in New York.   (AP Photo/Mark Lennihan)

(Newser) – It looks like many of the big banks are backing down from threats to raise debit card fees, reports the Wall Street Journal. After Bank of America was pounded over its decision to slap debit card users with a $5 monthly fee, JP Morgan Chase, US Bancorp, Citigroup, PNC Financial Services Group, and KeyCorp have all said they will not be adding such fees—though they say it's not a reaction to the Bank of America mess. "We looked at all options and quickly decided it didn't fit with our overall strategy," says a spokesman for KeyCorp.

Chase, which has been testing a $3 monthly fee in Wisconsin and Georgia, will end the practice next month. But Wells Fargo is currently running a test in five states, and SunTrust and Regions Financial are joining Bank of America with a monthly fee—a move that other banks hope will drive new customers their way. "It's not about the money. It's about 'are you kidding me?'" says one US Bancorp customer who said she would have "immediately" left left the bank if it instituted a fee—but now won't have to.

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Showing 3 of 29 comments
Oct 28, 2011 6:54 PM CDT
It's your money, so why are you paying a banker to hold it and use it to get richer? Credit unions are owned by member-customers and employees. • Open an account with a Credit Union • Transfer your funds to the new account (on or before 11/05 if possible) • Follow your bank's procedures to close your account To find a credit union near you: Some small locally-owned banks can be non-evil also, so consider them as a second choice if you are unable to join a credit union. Operation Cash Back
Oct 28, 2011 2:01 PM CDT
The market is the ultimate form of consumer democracy. If you displease your customers, they will vote with their feet and money.
Oct 28, 2011 11:59 AM CDT
Double post.