Banks back down on debit card fees
A man holds up some credit and debit cards.
Steve Chiotakis: A lot of those people who spend money do it on their debit cards. And now JP Morgan Chase has decided not to charge a monthly fee for using those cards. Bank analysts say other major banks will likely follow, after watching Bank of America get pummeled with consumer complaints for its $5-a-month fee.
Marketplace's Nancy Marshall-Genzer reports.
Nancy Marshall-Genzer: J.P. Morgan started experimenting with a three- dollar-a-month fee last February. The fee was only charged in Wisconsin and Georgia. It'll be dropped next month. So, is the debit card fee idea dead?
Bert Ely is a banking consultant in Virginia.
Bert Ely: I don't think it's totally dead but it has suffered a fatal wound. And that's why I believe Bank of America will either abandon their five dollar a month fee altogether, or at least substantially modify it.
That could mean BofA customers with high balances wouldn't have to pay the fee. Or, Ely says, you could get around it by applying for one of the bank's credit cards. But he says, all the major banks will continue experimenting with other types of fees.
In Washington, I'm Nancy Marshall Genzer for Marketplace.