Big Banks Forced to Scrap Debit Fee Idea

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"Imagine that: when the banks actually disclose a fee to consumers, they have the capacity to vote with their feet—in this case by migrating to competitor banks with a more customer-friendly policy.  This is free market economics at its best."

Facing a hue and cry from consumers, Bank of America announced on Friday that it will drop its planned $5.00 debit fee charge.

At the beginning of October, major banks including JPMorgan, Wells Fargo and Bank of America announced the fee.  But consumers are showing some feistiness.  In the past month, consumers have mobilized against the fee, getting 300,000 signatures on a Change.org petition.  And worse for the banks, they are defecting at large rates from the big banks in favor of smaller, local banks.  In response, Bank of America (last but not least) became the final banking giant to nix the charge.

Could there be a better example of the benefits of transparency?  Imagine that: when the banks actually disclose a fee to consumers, they have the capacity to vote with their feet—in this case by migrating to competitor banks with a more customer-friendly policy.  This is free market economics at its best.

Transparency and disclosure makes it possible for the middle class to see the truth.  More transparency even trumps more regulation.  Let the public vote with their feet... and their mouse clicks.
  
Courtesy of The Corporate Observer