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| Bank of America shares fall amid debit card fee anger | Bank of America shares fall amid debit card fee anger |
| (about 1 hour later) | |
| Shares in Bank of America have fallen 2%, a day after it announced plans to charge debit card users $5 (£3.20) per month to pay for their purchases. | Shares in Bank of America have fallen 2%, a day after it announced plans to charge debit card users $5 (£3.20) per month to pay for their purchases. |
| Bank of America, the largest US bank by deposits, said it would introduce the fee early in 2012. | Bank of America, the largest US bank by deposits, said it would introduce the fee early in 2012. |
| The move comes ahead of a new rule that will limit how much lenders can bill retailers for customer debit card transactions. | The move comes ahead of a new rule that will limit how much lenders can bill retailers for customer debit card transactions. |
| The bank's debit card holders will still get free cash withdrawals. | The bank's debit card holders will still get free cash withdrawals. |
| The monthly charge will apply to users of Bank of America's basic bank accounts, and will be in addition to any service fees they already have to pay. | The monthly charge will apply to users of Bank of America's basic bank accounts, and will be in addition to any service fees they already have to pay. |
| A number of smaller US banks, such as SunTrust, a regional lender based in Atlanta, have already introduced charges for debit card purchases. | A number of smaller US banks, such as SunTrust, a regional lender based in Atlanta, have already introduced charges for debit card purchases. |
| So far only Citigroup has ruled out introducing the change. | |
| 'Changed economics' | |
| Bank of America said the new fee would be rolled out on a state-by-state basis. | |
| Its move comes as an amendment to the Dodd-Frank Wall Street Reform and Consumer Protection Act goes into effect from 1 October. | |
| The amendment, brought by Democrat Senator Richard Durbin, limits the fees that banks can charge retailers for processing debt card transactions to 21 cents. | |
| This compares to the previous average of 44 cents, meaning a substantial fall in revenues for the banks. | |
| A Bank of America spokeswoman said: "The economics of offering a debit card have changed." | |
| Sen Durbin said Bank of America's move was "overt and unfair" and that he hoped its customers would "have the final say". | |
| "Bank of America is trying to find new ways to pad their profits by sticking it to its customers," he said. |