BofA Plans To Charge Customers Unless They Buy More Products, Have Enough Money

  • metta

    Posts: 39166

    Mar 01, 2012 11:59 PM GMT
    BofA Plans To Charge Customers Unless They Buy More Products, Have Enough Money

    http://www.huffingtonpost.com/2012/03/01/bank-of-america-fee_n_1312347.html
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    Mar 02, 2012 12:08 AM GMT
    Great! Hopefully credit unions will finally kill off the 'banking' sector and bring control back to those who's money is actually deposited!

    Way to go BofA!
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    Mar 02, 2012 12:42 AM GMT
    metta8 saidBofA Plans To Charge Customers Unless They Buy More Products, Have Enough Money

    http://www.huffingtonpost.com/2012/03/01/bank-of-america-fee_n_1312347.html


    A direct byproduct of laws that limited debit card bank fees. But that's why there's competition - if you don't like it, switch.
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    Mar 02, 2012 12:45 AM GMT
    riddler78 said
    metta8 saidBofA Plans To Charge Customers Unless They Buy More Products, Have Enough Money

    http://www.huffingtonpost.com/2012/03/01/bank-of-america-fee_n_1312347.html


    A direct byproduct of laws that limited debit card bank fees.
    Hmmm really? Been with Navy fed for 30 yrs.. not a damn thing has changed with my debit card.. its still ZERO!

    Me thinks yer full of it.
  • metta

    Posts: 39166

    Mar 02, 2012 12:48 AM GMT
    ^
    I think that the government did cut the maximum rates banks could charge merchants on their cards. They felt that the banks were being abusive.


    "the Wall Street Reform and Consumer Protection Act. It is known as Dodd-Frank, after the two Democratic legislators who pushed it through: Massachusetts Rep. Barney Frank and former Connecticut Sen. Christopher Dodd.

    Provisions included a fix-it job engineered by Illinois Sen. Dick Durbin at the request of major retailers like Walmart, who had their own beef with banks over debit card fees. Durbin's solution ordered a break for the merchants and wound up shifting the cost to the debit card-using public.

    Some consumer protection.

    When debit cards came into use, banks charged retailers a flat rate to process sales. Over time, they shifted to taking a tiny percentage of each sale, with the average fee in 2009 working out to 44 cents per transaction.

    Because processing cost only 4 cents per sale, retailers felt victimized. Dodd, Frank, Durbin and colleagues came to the rescue by ordering the Federal Reserve to figure out a fair price.

    The Fed settled on a 21-cent limit that can grow to 23 cents in some circumstances, one result being that banks are suddenly losing $6.6 billion in annual revenue."

    http://articles.nydailynews.com/2011-10-02/news/30252272_1_debit-card-fees-retailers

    So instead of charging 1100% markup they are only aloud to charge a 575% markup. Banks like to use the new reduced fees as an excuse but I think it has more to do with all of their bad loans.
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    Mar 02, 2012 1:10 AM GMT
    It's arrogance to believe that when you set a price control on one thing, there won't be unintended consequences. It's not like there weren't choices - but legislators couldn't help themselves.
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    Mar 02, 2012 1:12 AM GMT
    BofA is insolvent and should be broken up immediately. It's existence as a "zombie" bank is harming the economy.
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    Mar 02, 2012 1:14 AM GMT
    Christian73 saidBofA is insolvent and should be broken up immediately. It's existence as a "zombie" bank is harming the economy.


    Only after the US government forced them to buy Merrill and absorb their substantial unrealized losses.
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    Mar 02, 2012 1:18 AM GMT
    riddler78 said
    Christian73 saidBofA is insolvent and should be broken up immediately. It's existence as a "zombie" bank is harming the economy.


    Only after the US government forced them to buy Merrill and absorb their substantial unrealized losses.


    Actually, it's been insolvent for years and it received more than enough money to hand the losses from Merrill...
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    Mar 02, 2012 8:09 AM GMT
    Christian73 said
    riddler78 said
    Christian73 saidBofA is insolvent and should be broken up immediately. It's existence as a "zombie" bank is harming the economy.


    Only after the US government forced them to buy Merrill and absorb their substantial unrealized losses.


    Actually, it's been insolvent for years and it received more than enough money to hand the losses from Merrill...


    Insolvent since when? And care to substantiate that?