The fallout from the banking fee debacle, brought to you by Congressional meddling, corporate greed and social agitation, continues. And credit unions are making their play for your hearts, minds and deposits!
Let’s back up a couple of months. On October 1, new regulations went into effect cutting debit card fees from 44 cents a swipe, to 24 cents. These are the fees charged by the banks to the merchant every time you use your debit card. The banks howled, saying that was a loss of $5 per month, per debit cardholder.
So, big banks like Bank of America and Wells Fargo announced new fees targeting the cardholder to make up the lost revenue. And it was the consumers’ turn to howl. Stir in a little Occupy Wall Street to get things really agitated, and somebody came up with Bank Transfer Day.
Bank Transfer Day proposed that on November 5th, we all dump our banks and sign up with a non-profit, no-shareholder credit union. And the credit unions howled – with glee. The result? According to this article, over 650,000 people joined a credit union in the last month, bringing over $4 billion with them.
Also, Bank of America and Wells Fargo announced that they were canceling their proposed fee hikes. But you have to wonder if, similar to the Netflix rate-hike disaster, the damage is already done.
Anyway, this is not an endorsement of credit unions, nor an indictment of banks, but a conversation starter (hopefully.) What do you think?
I have friends that have dumped BOA when they found out about the fee hikes. They stayed with their new bank even when BOA dropped the hike. My bank made no changes and I also belong to a credit union. Think I’ll stay where I am….can jump to CU if the bank starts to do any crazy changes but for now I’ll stay right in the middle.
sounds like a plan! thanks timmie
I think the banks will find another way of making up the money by charging in a different way! The boost in the credit unions is a wait and see thing.
My bank made no changes to my account so I have stayed with them. I do belong to American Airlines Credit Union and I have been thinking about changing anyway. The only thing that keeps me from doing it right away is the location. My opinion on what the Banks did, they got what they deserved. I do agree with Rhonda (above) the banks will find another way to charge us. In fact on an account for my sister-in-law (she is disable & we take care of her) the bank has been charging a $1.87 a month for return statement fee, however we receive her statement. Funny thing!!
I bought my house in 09 with the presence of mind to buy a house that I could afford on half my income.now,the mortgage company is trying to take it and en out of work for over a year working in the has-mat cleaning up after the warfare materials THEY made and all thanks to big banks and what’s not going on in congressbee