Little financial institution responds to B of A debit card costs
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Financial institution of America, the country's largest lending institution, has become very unpopular with several of its depositors. Recently the banking giant announces that it would levy a $5 fee every month against its debit card customers. The statement drew fire not only from the community, but from the White House also. But a little bank in Florida is lashing back by offering a $5 monthly reward to its debit card users. Article source: Regional bank pays debit card users $5 per month
Bank rewards
Bradenton.com explained that Community Financial institution is going to be paying $5 a month in its 17 branches in Southern Florida. The reward is being offered as a direct counter to the recent shift on the part of the banking giant.
Katie Pembles works at Community Financial institution as the president. She spoke to Bardenton.com saying:
“We needed to do something to help consumers who are under attack from behemoth national banks charging fees that just don’t make sense. People have a choice of where to bank, and at Community Bank, we thought paying people $5 per month rather than charging them $5 per month was a good way to set us apart.”
Loss of revenue
The new regulations brought on Bank of America to los income. This is why it is billing a fee every month to consumers. These kinds of programs will be tested by other banks. Starting early next year, Wells Fargo and Chase will start these.
Anger from community
The statement from Bank of America had a strong response. Customers weren't happy. The weekend after the announcement was made, the Navy Federal Credit Union had a 20 percent increase in new accounts.
President slams the shift
President Barack Obama is not happy with Bank of America. He thinks the company needs to accept the regulation instead of continuing to try to make its ridiculous income.
“You don’t have some inherent right just to get a certain amount of profit if your customers are being mistreated,” the president said.
Makes sense if it is a good bank
As reported by the Huffington Post, Philip Van Doorn of the financial news site TheStreet.com said paying customers back was "an interesting strategy" that makes "sense" if a financial institution is liquid and is growing loans.
This statement might end up being something that comes from lots of local banks in order to try and get more personalized service.
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