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Consumer Outrage Leads to Major Bank Exodus

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  • Description

    Rise of bank fees leads to credit union boom

  • Duration 2:25
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Highly publicized -- bank fees is -- -- some serious anger among consumers but credit unions are winning getting a flood of new work.

Jonathan series live in Atlanta on this -- is happening Jonathan this morning.

Hi bill well in recent weeks -- several major banks have announced a new monthly debit card fee and that is in a raging.

Many consumers who have grown accustomed to using these debit cards without paying any fees.

-- encouraged everyone to get that -- -- they want you to have that attack they want eighties -- debit card.

And now all of a sudden.

They're having to pay to have the privilege to happen.

That was probably corporal who is closing accounts had two major banks -- switching to Charlotte metro credit union.

Which reports up 350%.

Increase.

In new account registrations on line since the major banks introduced debit card fees the national association of federal credit -- reports.

Activity on its web site see you look up dot com has tripled bill.

-- what's the impact on the banks.

Well already banks are taking action chase and Wells Fargo have announced that they are ending a pilot programs that were charging customers in certain -- markets.

A monthly debit card fee of three dollars and there are reports that Bank of America which plans to charge a five dollar -- next year.

We'll make it easier for customers to avoid the charge.

By maintaining minimum balances were signing up for additional financial services.

The banks are trying to make up for losses due to a new federal cap on what they can charge merchants for each debit card transaction.

The CEO of Wells Fargo explain it cost large banks a lot of money to maintain the past ATM networks and other services that their customers expect from them.

There have been studies done by the Federal Reserve and others that would suggest that checking account cost between two and 300 dollars a year.

Two.

To monitor to give to operate the reality is we were all -- these fees before.

-- retailers were charging a little bit more.

For every box of -- that you brought to help cover some of these exchange fees.

Every business professor Ryan Hamilton explains -- there is a much stronger psychological impact for consumers.

When they see that he printed on their bill then when it's hidden in the cost of goods or services all right Jonathan thanks that Jonathan -- is live -- --

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