Posted by jiml60 on 9/30/2011 3:53:00 PM (view original):
I use BofA because it is across from my office and the ease of finding an ATM but after hearing this, at lunch went and closed my account. Opening an account with a smaller community bank, I'll be inconvenienced on the ATM use but can still use the debit card at the same places I use it now.
You have every right, of course, to close your account with the Big Bad B of A. I applaud you for using your freedom to do it. I do find it odd that you are in essence, punishing them for something they did in response to a new regulation. What did you expect them to do? I can think of a couple of options:
1. Pass on the additional cost to the consumers (what they did).
2. Reduce costs another way, perhaps by
a. Reducing work force
b. Reducing the number of branches
c. Increasing rates on credit cards
The "swipe fee limits" of the Durbin Amendment, and the corresponding reaction by B of A and others is just an example of what happens when the government tries to use their power to protect the consumer. This is not to say that some actions they take aren't justified, but there are consequences to things.
If I own a 'mom and pop' shop and the government controls the price I can charge some customers for an item, I have almost no choice but to make up for it some other way. (Kinda like when the government manages what prices doctors and hospitals can charge for Medicare services - you see inflated base costs for those same services so they can recoup those costs of doing things).
The other thing you can do, in order to avoid the monthly fee is still use their ATM, but withdraw cash as needed. Oh wait....there's another unintended consequence: you may see a rise in muggings near cash machines (many criminals are not all that dumb).
Ah, the joy of regulation. Action/reaction....
(disclaimer: as I mentioned before, here and in other threads - I am not against regulation. I am only pointing out that it's bigger than 'there oughta be a law...')..