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In hinting that the consumer bureau should look at B of A's $5 debit card fee, Obama has solidified bankers' worst fears about the CFPB.
October 4 -
Bank of America Corp.'s plans to charge its customers for using debit cards will help boost the bank's credit card business, according to U.S. Sen. Dick Durbin, D-Ill.
October 4 -
Citigroup, which last week touted its promise not to charge customers for using their debit cards, is telling some checking customers that it will start charging them $15 per month unless they maintain a balance of at least $6,000.
October 3 -
Understanding the management of Bank of America is now next to impossible. What makes them want to anger 50 plus million solid retail customers while their entire operation is in damage control? Five million customers from the bank I headed joined this group when B of A acquired it in 1992.
October 3 -
Bank of America Corp., the largest bank by assets, plans to start charging its checking customers $5 per month, or $60 annually, if they use their debit cards to make purchases. The fees will go into effect early next year.
September 29
WASHINGTON — Raj Date, the de facto head of the Consumer Financial Protection Bureau, weighed in on the ongoing furor over Bank of America Corp.'s decision to apply a monthly fee for debit card use, saying the focus should be on transparency.
Date did not criticize B of A's move, but instead appeared to be laying the groundwork for a uniform disclosure standard for checking account terms.
"This isn't about any one fee from any one bank," Date said in a press release. "The problem is that checking accounts often come with a wide variety of unexpected costs that can quickly add up for consumers. Different banks charge different fees. Different fees are applied under different terms and conditions. Different banks give different names to the very same fee."
Date said that consumers should ideally "have a simple way to evaluate checking account costs."
"The CFPB has the ability to simplify checking account disclosures - an idea that some consumer groups and some banks have already been developing," Date said. "Making the costs transparent is good for consumers and good for competition. It allows consumers to compare the checking account options from large banks, community banks, and credit unions and pick the one that works best for them."
Date's comments followed consumer outrage over B of A's announcement, and comments from President Obama that suggested the CFPB should "put a stop" to the $5 monthly fee. B of A announced the new fee last week, blaming the Durbin provision in the Dodd-Frank Act that limits interchange fees for debit card usage.
Date's words appear to indicate the new consumer agency is more likely to ensure that all relevant checking and debit card fees are properly disclosed, but not seek to interfere with a bank's ability to charge fees.
