The second-biggest U.S. bank is reworking its plans as rivals Wells Fargo & Co and JPMorgan Chase & Co have decided not to
charge monthly fees, ending test programs in certain states.
many customers to sidestep the fee by taking measures such as maintaining minimum balances, having paychecks direct deposited,
or using Bank of America credit cards, the person said.
Under earlier plans, customers might have needed balances totaling $20,000 across all their Bank of America accounts to skip the
Bank of America set off a firestormLV Outlet
criticism from customers, consumer advocates and politicians last month when it disclosed plans to charge customers $5 per month
for using their debit cards, starting sometime next year.
The goal was to make up revenue lost to a law that slashes the fees banks charge retailers when consumers swipe their cards.
plans to apply similar fees, many banks and credit unions decided not to institute the charge and have encouraged customers to
Charlotte, North Carolina-based Bank of Coach
America is not abandoning the fee now and will likely include it in new account types the bank is testing in
three states. The bank plans to roll out these packages nationwide next year.
The $5-per-month fee may still remain an option for customers, the person said.
The bank has said the purpose of the new account types is to provide customers with upfront pricing, instead of hitting them
can pay monthly fees of between $9 and $20, or avoid the charges by keeping minimum balances, using their credit cards or having
a minimum amount deposited to their account.
Among other banks, Wells Fargo & Co said late Friday that in response to customer feedback it has canceled a five-state pilot
program that would have charged customers $3 per month to use their cards
After testing a $3 per month fee in two states since February, JPMorgan Chase & Co has decided not to charge customers, a person
familiar with the situation said on Friday. The test will end next month and will not be extended or expanded, the person added.
Citigroup Inc announced an account overhaul Coach
in mid-September that did not include a monthly debit card usage fee. Stephen Troutner, head of banking products
for Citi's U.S. consumer bank, said at the time that the New York-based bank found customers were strongly opposed to such
monthly maintenance fees.
said during an October 19 conference call with analysts the Minneapolis-based regional bank is monitoring the results of other