Debit card fees irk customers, prompt flight to credit unions

Bank of America announced it will charge $5 monthly debit-card fees, the latest in a string of fees that have sent bank customers to credit unions. (Photo by Getty). Bank of America announced it will charge $5 monthly debit-card fees, the latest in a string of fees that have sent bank customers to credit unions. (Photo by Getty). Photo: 2011 Getty Images Photo: 2011 Getty Images Image 1 of / 1 Caption Close Debit card fees irk customers, prompt flight to credit unions 1 / 1 Back to Gallery

The decision by Bank of America to charge $5 debit-card fees has peeved hordes of customers, prompting a wave of online tirades and a continued flight to local credit unions.

"I've been meaning to dump my Bank of America account for a credit union for quite some time, but my laziness has kept me from doing it," one man wrote on Facebook.

"So, thank you BOA for introducing the $5 per month fee to use my debit card, that's enough motivation to finally free myself from your evil grip."

A day after the country's largest bank announced its debit fee cards, Washington's largest credit union said its branches were bustling. BECU spokesman Todd Pietzsch couldn't say for sure if the activity was due to Bank of America's news, but said the credit union was on track to break a record in new memberships Friday.

"Obviously, we're very busy today," Pietzsch said.

He said BECU's membership has grown as customers ditch banks and their fees. The institution saw an 18 percent rise in new memberships in the last 12 months. In August, it set a record with 8,700 new monthly members.

On Friday, BECU was on track to break that record, with an expected 9,000 new members for September. It has a total of 720,000 members.

"I think there's a lot of consumers realizing there are other options out there," Pietzsch said.

"They don't need to sit tight and have fees imposed on them. And credit unions are a great option."

He said BECU has no plans to add fees for debit cards or checking accounts.

Over at the Washington State Employees Credit Union, officials were experiencing a similar bump in activity Friday. Spokeswoman Ann Flannigan said the organization normally sends out 30 to 40 new membership packages in response to online requests.

"This week we've sent out 62," Flannigan said.

"Each time the banks make a change like this, it shines the spotlight on what a tremendous alue and how consumer-focused credit unions are."

Bank of America's debit-card fees were the latest in a string of unwelcome bank charges for customers.

According to the Associated Press:

The 38.7 million people who carry Bank of America debit cards will face a similar decision in the latest example of banks raising fees or establishing new ones — not just for debit cards but for checking accounts, visiting ATMs, even talking to a teller. Bank of America's announcement hits particularly hard because banks have spent the past decade encouraging their customers to go for the ease of debit cards, which deduct purchases immediately from a checking or savings account.

Bank of America's website crashed Friday before limping along with slowdowns, a day after its announcement. The bank declined to why the problems occurred, or how widespread they were.

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