Just one month ago I wrote about the implementation of debit card fees coming into play for big banks such as Chase, Wells Fargo and most notably Bank of America.

Due to the change in a new government regulation that caps what banks can charge merchants for debit transactions they announced plans to implement a monthly debit card fee to help recoup it’s revenue that would be lost due to the new regulation.

What I did not report on is what I saw escalate after I wrote this article and the news hit the public about these upcoming changes.

In my personal life I saw little by little people would post one thing or another about this on Facebook, Twitter and Google+. “I can’t believe Bank of America!!” and “Those greedy bastards!” became the norm in my news feed.

At one point a good friend of mine posted a link to the Change.org petition to “Tell Bank of America: No $5 Debit Card Fees!”

At first I rolled my eyes at this thinking, “yeah, okay, what good is this petition going to do?” I even commented on this thread saying that while I thought it was a valiant effort it wasn’t really going to do anything in the long run; big banks are NOT going to budge. In my mind I thought this petition to be silly and foolish. I thought that this creator, Molly Katchpole, was an excellent person for standing up for what she believed in but ultimately felt like she was wasting her time.

The petition read:

Bank of America, the largest bank in the U.S., will begin charging customers $5 each month to use their debit card to make purchases. This is an outrageous fee.

What’s worse is that Bank of America’s decision to charge customers for debit card use will likely spread to other banks. Wells Fargo and Chase bank have already announced plans to test a $3 monthly fee to their customers.

Not everyone will pay the fee (at least not at first). If you have $20,000 in combined balances at BofA or have a mortgage with the bank, they’ll waive the $5 monthly fee. That means this change will hit low income customers the worst – including people like me, a recent college graduate working two part-time jobs.

When the recession first hit, we gave Bank of America billions of dollars in bailout money. Our reward is higher fees for the same services. At some point, we’ve got to say enough is enough.

Please join me in telling Bank of America you’re fed up. Sign my petition calling on BofA CEO Brian Moynihan to swiftly reverse the bank’s decision to charge us $5 a month to use our own debit cards – Source.

And now, I sit here, feeling a little foolish. Quite possibly a lot of foolish. For you see, that petition really skyrocketed. REALLY skyrocketed. So far over 300,000 people have signed the petition and as of October 28, 2011 it was reported by an unnamed source that Bank of America plans to revise this new fee plan and make it easier for customer’s to avoid the fees. JPMorgan Chase and Wells Fargo both announced they would be putting their debit card fee programs to rest and have canceled plans to charge customers for their debit cards.

On October 28, 2011 ABC World News with Diane Swayer covered the story and broke the news to many of Americans that the impending debit card fee structure would soon be revised.

A play by play of this entire process can be seen below:

September 29: Bank of America announces a new $5 monthly debit card fee.

September 30: Molly creates her petition on Change.org; more than 150,000 people sign in the next 5 days.

October 5: The petition becomes a major national story. ABC News interviews Molly, then tracks down Bank of America’s CEO Brian Moynihan and forces him to respond to it.

October 6: Molly delivers 153,000 petitions to Bank of America and closes her account. She appears on ABC World News again to discuss the petition. Local media in Charlotte (where Bank of America is based) openly speculate that the growing controversy could lead to the firing of Moynihan.

October 9: Molly is featured in a major article in the New York Times as an example of the public’s frustration with big banks.

October 10: Bank of America executive Andrew Plepler calls Molly Katchpole to discuss her petition.

October 13: Molly meets with Congressman Brad Miller to discuss a bill in Congress to make it easier to switch banks. The two later appear on CNN together.

October 18: Molly’s petition reaches 225,000, as Bank of America reports a $6 billion profit. The outrage continues to grow.

October 26: Bank of America CEO Brian Moynihan says he’s ‘incensed’ over recent criticism of the bank fees

October 27: JPMorgan Chase, the largest bank in America, and Wells Fargo announce they will stop testing $3 debit card fees and cancel any plans to charge customers to use their debit cards.

October 28: Bank of America begins a full-on retreat from the $5 debit card fee. An unnamed source at the bank says they will ‘soften’ the fee and allow more customers – including anyone with a direct deposit – to avoid the $5 fee. Molly appears on ABC World News for the fourth time to talk about her petition.

October 30: Molly’s Change.org petition reaches 300,000 signatures, and customers continue to demand that Bank of America cancel the $5 fee for all of its customers – Source.

This one woman with one voice just quite possibly changed the future of our banking system.

While I do think that the big banks will continue search for another way to nickel and dime customers due to their impending loss of revenue from the new merchants cap today we stand in awe of the underdog, Molly Katchpole, well done.

Other Related Articles to Read

• Is Bank Of America Taking Advantage Of The Unemployed With Debit Card Fees?
• BBB Warns Of Unapproved Funds Directly Withdrawn By Funds Direct
• Multi-Billion Dollar Securities Scam Surfacing On LinkedIn
• Romanian Citizen Busted For $1.5 Million Fraud Ring Of HSBC Customers
• New Computer Virus Commits Post Transaction Attacks On Your Bank Account
• If At First You Don’t Succeed, Commit Fraud and Fail Again : Defrauding From Behind Bars
• “TeaseMePeter”: The Nigerian E-mail Scam Hits Dating Websites
• It’s Been A Year Since The TSR – What’s Changed With Debt Settlement?
• Corrupt Criminal Club: Member’s Only
• FTC Bans Landmark Clearing From Using Remotely Created Payment Orders

Read the full article at GetOutOfDebt.org, click here: Bank Of America Backs Off $5 Debit Card Fees After Anti-Fee Petition Skyrockets

Edward

“Dear Steve,

I am not a great storyteller so here is my situation- I have three accts with AMEX that are charged off and are about to go to collections total is about $8,000 I have credit acct with BoA that is charged off to the tune of $5,000, I don’t know what to do.

I lost my job and was unemployed for 5 months and now I am employed but can’t get back in their good graces. I really could only afford about $200/mo total in payments towards these without causing myself or my family problems. How can I try to get this done? What should I do? Doesn’t seem like enough to file for bankruptcy but I also want to avoid court…any thoughts? Do you need more info?

Edward”

The Answer:

Dear Edward,

I think the technical issues surrounding your situation answer the question for you. With $13,000 of debt your monthly payment in a credit counseling program will be $260 – $300 a month. That might simply be out of your reach.

Even if you did enroll in a credit counseling program you would need to make that new minimum payment each and every month for the next 60 months.

It might just be that your best course of action is to contact both a debt management company and a local bankruptcy attorney. Talk to both groups and then after educating yourself about what each has to offer you can make an informed decision that is best for you.

Big Hug!

@GetOutOfDebtGuy

Other Related Articles to Read

• Credit Card Companies Are Coming For You. Protect the Wife and Children.
• I’m Thinking of Bankruptcy Because of American Express. – Kendra
• My Business Work is Dead and I Defaulted on My American Express Card. – John
• I Was Making Payments to American Express and They Are Now Threatening to Sue Me. – Gracie
• Second Annual Small Business Saturday Could Mean Deal For American Express Cardholders
• Bank Of America Backs Off $5 Debit Card Fees After Anti-Fee Petition Skyrockets
• American Express Targets Whippersnappers With FourSquare Credit Deals
• CareOne Said They Could Not Help Me With My Amex Debt. – Chris
• NCO is Offering Me a Settlement On My Amex Card. Is It a Good Deal? – Wayne
• I’m a Student and Can’t Pay My AMEX Bill. – Erin

Read the full article at GetOutOfDebt.org, click here: I Have Accounts With AMEX and B of A That Are About to go to Collections. – Edward

Bobby

“Dear Steve,

I’m a college student, age 22, and have trouble reducing my credit card debt due to the high interest rates. I have nearly reached my credit limit of $5,000 with my Bank of America Credit Card due to the apr of 25%. My credit score has been reduced to poor due to a few late payments (3) and have had overlimit fees charged thus increasing my rate.

I’ve since been paying on time with at least 20% more than the minimum amount (i.e. paid $200 for a $153 BofA bill), but I can’t continue to pay like this through 2009.

What are my options other than filing bankruptcy to help me reduce the 25% apr on my credit card and/or my debt level?

Thanks for your consideration.

Bobby”

The Answer:

Dear Bobby,

It would be a shame to see you go bankrupt over just one card. My suggestion would be to first try a debt management plan and work out a new payment plan. If you enroll in a debt management plan Bank of America will probably reduce your interest rate to 7% after a few payments. Click here for debt management information.

The downsides of this approach is that it will close your card, but it is maxed out anyway. And a comment could be made on your credit report that you are working with a credit counseling or debt management company, but your credit report is dinged anyway from the late pays.

The debt management approach will eliminate any more overlimit fees as well so that sounds like the most logical place to start.

Steve

Other Related Articles to Read

• I Would Like to Consolidate My Debt, However I’m Having a Difficult Time Finding Someone Who Will – Laurie
• Bank Of America Backs Off $5 Debit Card Fees After Anti-Fee Petition Skyrockets
• I Have Accounts With AMEX and B of A That Are About to go to Collections. – Edward
• How to Shop for a Good Debt Management Program
• I Really Screwed Up And Need Some Direction. – Chris
• I Called Bank of America About My Reduced Credit Limit. They Reduced it More. – Charles
• Deepu’s Wife is Unemployed And is Looking for a Debt Consolidation Loan
• Are Debt Management Programs For Real? – Kim
• Bank of America Hit With Class Action Suit Over Credit Card Fees And Charges
• Credit Card Companies Are Coming For You. Protect the Wife and Children.

Read the full article at GetOutOfDebt.org, click here: What Are My Options Other Than Filing Bankruptcy to Help Me Reduce the 25% APR on My Bank of America Credit Card? – Bobby

I see a new advertising campaign in our future.

Even though the Federal Reserve has lowered its rate to 1%, banks are raising your interest rates in hopes of making a bigger profit. Oh yes, they are raising your fees or charging news ones as well.

At a time when the government is pleading for consumers to return to consuming, the banks are instead dissuading people from doing this by punishing consumers with higher fees and charges. And at the same time the banks are getting billions of dollars in bailout money to help get this economy moving again. It almost sounds damn near unpatriotic.

And let’s be clear about why the banks and credit card companies are scrambling to make these new revenue streams and profits. It is because the brightest and most financial savvy banking minds of our time swindled themselves by buying and insuring crap loans that inflated housing values and now result in record numbers of foreclosures. That’s some damn smart banking.

So the banks losses are the direct result of their own ineptitude and you are going to pay for it with higher credit card fees and charges.

What Credit Card Companies Are Doing

I would not be surprised at all to see monthly payments for cardholders to increase significantly as more creditors take the Chase lead to increase monthly minimum payments from where they are now. It is a quick win to increase their cash flow and will likely result in higher losses, but more cash now, when they need it.

Here is an example of what it can mean to you:

$10,000 Card Balance
Old Minimum Payment: $200/mo
New Minimum Payment: $500/mo

Imagine if all your cards did that to you, which they legally can. Many monthly budgets would be torpedoed leading to missed or late payments, but wait, that generates more fees to the credit card companies. Me sees a plan.

The banks will claim that by raising the monthly minimum payments that it is in the interest of the debtor since it will help the consumer to pay their bills off faster and get out of debt sooner. Truly this is nothing more than raising the hurdles higher and then saying it is better for runners who now have to jump higher.

Credit Cards Still Available

You should not get the impression that credit card accounts are not still plentiful and available. Just look here to see what is being offered.

While credit card companies are going to punish and raise revenue on its current crop of hostages, ah, customers, they are not going to stop extending credit. It’s what they do.

That is a good news, bad news situation. If you are stuck with a bad card with horrible rates and terms, it is still possible to switch. Granted, with credit standards toughening it is harder to switch of you have bad credit.

Other Related Articles to Read

• I Have Accounts With AMEX and B of A That Are About to go to Collections. – Edward
• Banks Agree to Wipe Out Up to 40 Percent of Credit Card Debt But Watch Out.
• Credit Card Horror Stories: Tales of Credit Limit Reductions and Account Closures
• Bank Of America Backs Off $5 Debit Card Fees After Anti-Fee Petition Skyrockets
• What Are My Options For Getting Bank of America to Lower my 27.99% Credit Card Interest Rate? – Chris
• Biggest Banks Nailed by Foreclosure Paperwork Problems
• Jairo Wants to Stop Paying His Bank of America Clean Sweep Debt Consolidation Loan
• Credit Card Interest Rates by Credit Score, Type of Card and Issuer
• Should I Quit Paying Bank of America For My American Express? – Becky
• Chase is Making Me an Offer. Either Pay More Each Month or Pay More. – Sheri

Read the full article at GetOutOfDebt.org, click here: Credit Card Companies Are Coming For You. Protect the Wife and Children.

I do more than just write answers to questions, I read as well. And my days involve math as well. It’s like being back in school, but this time with a calculator and spell check. Oh where were you when I needed you. Back then we had flash cards and now we have flash RAM.

I still remember when my high school chemistry teacher let us put down our slide rules and bring in a calculator. And those early calculators were expensive. But my best memory was when fellow classmate, Jeff Kemp, latter NFL quarterback, brought in the first calculator and someone stole it. Damn you chemistry students!

So anyway, the original plan for this post was to share with you what I’m reading today to see what is going on. I’ll just post a running list below.

What I’m Reading Today

• Economists React: CPI Reflects ‘Crunch’ in Consumer Spending
• Automakers’ Issues Worry Credit Markets
• Investors Hit BofA Loan Modifications
• ‘Saved by Zero’: The Toyota Ad That Won’t Stop
• Plastic Surgery Below the Belt (I thought the title referred to cutting credit card debt, ‘plastic surgery’, oops. Warning: It’s Not!)
• The New Star Trek Trailer Is Online
• Reid seeks to lower expectations for auto bailout
• Less Power to Purchase: Consumers’ Credit Card Limits Slashed as Companies Try to Reduce Risk
• Mortgage ‘Reform’ Is Just a Small Step Forward
• The Money Has Come From Somewhere
• Time Inc. Layoffs: Publishers, Top Execs. at Southern Progress and Cooking Light Out
• BASF to Shut Down 80 Plants Temporarily, Cuts View
• Top Traders Still Expect the Cash
• Fury at U-turn on IVAs: Insolvency experts attack Government’s retreat from plans for simplified IVAs.
• The ten most expensive places to park in the world

What I’m Watching Today

Other Related Articles to Read

• A Paper Worth Reading: Robo-Signing and Lack of Proof in Debt Buyer Cases
• Bank Of America Backs Off $5 Debit Card Fees After Anti-Fee Petition Skyrockets
• Root Canals and Appendectomy Were Expensive and Landed Me in Bankruptcy. – Ray
• I’m Living Paycheck to Paycheck After a Divorce and Can’t Make a Dent in My Student Loans or Credit Card Debt. – Tonya
• Debt Free! And You Can Be Too
• I Have Accounts With AMEX and B of A That Are About to go to Collections. – Edward
• I’ve Been Using My House as an ATM Machine. – Jeannette
• Kam Says “I Have Charged Off Debt In Collections And I’m Scared to Tell My Husband”
• This Time I Asked “Do You Think You Are a Failure When You Break Your Budget?”
• Keith Writes in And Wants To Know “Should I Consider Debt Consolidation For a Fee?”

Read the full article at GetOutOfDebt.org, click here: What I’m Reading and Watching Today