Dodd-Frank “Reform” Leads Banks to Hike Debit Card Fee
You remember, ladies and gentlemen, I can’t tell you the number of times it has become a major discussion topic for callers when banks have raised the ATM fee. People go nuts. They e-mailed me and called and talked about what a bunch of rotten creeps the banks were, “Why does there have to be a fee on the ATM anyway? I’m already paying this bank out the wazoo.” Well, sit tight because your bank is going to jack up your debit card fee. “Bank of America customers with basic checking accounts will be hit with a $5 monthly fee in order to use a debit card for purchases, the bank announced Thursday. Banks and card companies have been aggressively establishing and raising fees in recent weeks as banks plan for new rules taking effect Saturday that limit the amount they can charge retailers for each debit card purchase.” And credit card purchases.
For example, the fee is being cut in half. This is Dodd-Frank, and this is the Financial Regulatory Reform Act, the bill, this is where all the so-called consumer protections are. This is classic. This is exactly what the Democrats do. This is another one of those instances where the Commerce Committee in the Senate takes on cable TV rates, “They’re way too high, we’re going to have legislation, we’ll make sure the cable rates go down,” and all they do is go up. So in a consumer protection bill, Dodd-Frank, there is a directive that the fee banks charge institutions for using their credit cards be cut in half. I think it’s 48 cents down to 24 cents per transaction. So the banks, “Well, okay, we’ve got to obey that law.” So what they’re doing is they’re making it up somewhere else.