First, it was Wells Fargo on Oct. 28 who repealed its $3 debit card fees. Then, on Oct. 31 Atlanta-based SunTrust Bank rescinded its charge. Bank of America followed the very next day after seeing a general exodus of customers since the fee had been announced in late September.
“The general public was outraged by [the debit card fees],” junior accounting and finance double major Sean Krysick said. “I think there were definitely worries that each bank would lose a lot more business.”
The fees, which amounted to $5 for SunTrust and Bank of America per month for use of debit cards, were not tested to the general public before the announcement.
The reactions were quick and harsh, as many scrambled to switch banks and others made online petitions for both banks to repeal the fees. The public backlash proved to be too much for both banks.
“I personally go to a credit union to avoid having to pay the extra fees,” senior math major Ana Matos said. “Not having the fees might influence me to switch to them now because they have more locations for ATMs than my small credit union has.”
Junior health major Lilai Teum, a Capital One Bank user, was worried when he heard about the fees.
“I thought it was pretty ridiculous. But when I saw the backlash, I felt sure Capital One wouldn’t consider making their own fee.”
Although customers are overwhelmingly relieved by the banks not implementing the charges, the banks remain in serious financial trouble.
In the final three months of this year, Bank of America estimated its revenue will be reduced by about $475 million, JPMorgan said it could lose $300 million, and Wells Fargo estimated a $250 million hit. PNC Financial Services Corp. expects a loss of $75 million. And SunTrust Bank said it would decline by about $45 to $50 million.
The hits could have been much steeper had the banks lost all the angered customers from the fees.
“I started looking at other banks because I was going to take my business elsewhere,” Chris Leyden said, a Bank of America customer and junior government and journalism major. “Fortunately, I didn’t act right away and now that they’ve repealed the fees I’ll be staying with BofA.”