WASHINGTON — Sen. Richard Durbin, the author of the new cap on debit interchange fees, blasted Bank of America on Monday for its decision to charge customers $5 per month for using their debit cards. He also urged B of A customers to switch banks.
"Bank of America is overcharging its own customers," Durbin, D-Ill., said during a speech on the floor of the Senate. "Bank of America customers, vote with your feet. Get yourself out of that bank."
B of A says that it will charge the $5 monthly fee to make up for revenue lost as a result of the Durbin Amendment, which prompted regulators to cap interchange fees at roughly 24 cents per transaction.
Durbin said that based on B of A's own calculations about the impact of the new rules, the Charlotte-based bank will bring in twice as much revenue from the $5 monthly fee as it loses from lower transaction fees.
A B of A spokeswoman declined to respond to Durbin's speech.
Trish Wexler, a spokeswoman for the Electronic Payments Coalition, a group of banks, credit unions and payment networks, said that Durbin is responsible for the fees that banks are now charging, and he's trying to blame others.
"And now consumers are footing the bill for that decision," Wexler said.
She also took issue with Durbin's calculation about the amount of money that new fees will generate, saying that it is not clear how many customers will continue to use their debit cards.
