Bank of America Debit Fees
A nice case of the way a free market works.
Starting in early 2012, Bank of America (BOA) will begin charging customers who use debit cards a $5 a month fee. Ostensibly to lessen reliance on and reduce the dollar amount of ‘penalty fees’. Thats all good and well, but I never do anything to warrant ‘penalty fees’, and so BOA wishes to charge me $5 to get the same service I have now.
BOA probably has good reason to do so and I don’t blame them for it. Since the price of this “product”, banking, is going up, I am not a willing party at that price and will decline to purchase it.
Instead I will move my savings and checking to a different bank that will give me comparable service for the price I pay now, I let BOA lend my money to others and have agreed to a minimum account balance.
I’m willing to pay that price and not a penny more.
If enough customers leave BOA and other banks that choose to take up similar fees, than the costs will outweigh the benefits of the change and it will be reversed or the bank will take in less money than it was and have to downsize, layoff workers, or perhaps even fold.
Local banks will grow larger and reap the benefits of a competitors practices.
I love the smell of a free market in the morning. Smells like…liberty.
(Generally I think products and services should be sold at any price for with a buyer can be found. This is a just a case where BOA is going to find fewer buyers due to a higher price and that’s their problem. Always remember you have the right to vote with your dollars.)