Bank of America drops $5 debit card fee plan

Bank of America Corporation is dropping plans to charge a $5 monthly fee for debit card use, the bank said in a statement on Tuesday.Reuters reported that the second-biggest United States bank said the move was in response to customer feedback and competition. Bank of America was under pressure to make the change as rivals backtracked from plans to charge customers for using their debit cards.We have listened to our customers very closely over the last few weeks and recognize their concern with our proposed debit usage fee, the banks co-chief operating officer, David Darnell, said in a statement.JPMorgan Chase & Company and Wells Fargo & Company last week decided to cancel test programmes, while SunTrust Banks Inc and Regions Financial Corp said on Monday they would end monthly charges and reimburse customers.Bank of America had planned to start charging customers next year. Banks began crafting the monthly charges to make up revenue lost to a law that slashes the fees they charge retailers when consumers swipe their cards. The fees sparked a firestorm of criticism from consumers and politicians, and many smaller banks and credit unions shunned the practice.Bank of America began softening its stance on the fee last week. The Charlotte, North Carolina, bank planned to give customers more ways to avoid the charge, such as maintaining minimum balances, having a pay cheque direct-deposited or using their Bank of America credit card.
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