21st Century Convenience at What Price?

I was furious the other day when I read that Bank of America would start charging a monthly fee to use a debit card starting next year. As a regular debit card user, BOA was already on my hit list for prior violations. This just made it worse.

BOA and similar institutions have reduced banking to the dinosaur age with these fees, telling people that if they forgo paper statements, copies of canceled checks, debit cards, recurring electronic payments (i.e. rent, mortgage, car loans, cable, gym memberships), and teller transactions, they will pay no fees. Or the customer has to upgrade to a "premium" or "advantage" account, where the minimum balance is higher and unattainable. Even better, they will tell you to get a credit card with their institution to "avoid overdraft", when they are really trying to get you to use that credit card (and pay interest on the balance to them) instead of their hassle free debit card (which costs them money).

We don't live in a thriving economy. Most people are struggling to pay their bills at all, never mind on time. Checks only work when you have the luxury of access to money five days before the due date every month. Living paycheck to paycheck doesn't work well with the paper check. Debit cards and electronic checks work better, so we can pay bills the day of with the same effect as a check sent five days before (without the hassle of postage and lag time in cashing it.)

If BOA goes forward with this plan, they will lose customers. Their stock went down the day they announced it, and the web site crashed. People are already threatening to leave and the exodus before January 1^st will be massive.

This crisis can't be solved by making the customers solely pay the bill. Banks need to work with the federal government to find a fair and balanced solution that does not penalize hard working taxpayers for the money banks won't get. I am willing to get an electronic statement, use an ATM for all my transactions and see my checks online, but taking away debit card and electronic check privileges goes too far.