BofA Debit Fee Plan Led to 20% Jump in Closed Accounts

From ABCNews:

The days of the easy fee grab may be coming to an end. Bank of America’s failed plan to impose a $5 monthly debit card fee led to a 20 percent increase in closed accounts in the last three months of 2011 and a public relations headache, which other companies may be keen to avoid.

Asked about the fee debacle in a conference call with investors last week, Bank of America CEO Brian Moynihan said, “So I’d say that yes, we had some impact from the $5 debit fee. That’s why we made a decision to reverse it.”

The incident may lead to companies thinking again before levying fees on services that have traditionally been free. Verizon Wireless canceled a $2 fee for single bill-pay transactions online or via telephone in December, just one day after the telecommunications company announced the fee.

“The BofA fiasco over charging customers a fee just to use their debit cards should be a lesson to other banks that consumers are angry that their practices wrecked the economy and that consumers now realize that they have choices,” said Ed Mierzwinski, director of the consumer program with the U.S. Public Interest Research Group. “Banks will now be careful to only attempt to impose fees that add value, as opposed to nuisance or “gotcha” fees. Unfair fees now result in consumers voting with their feet.”

Rick Santorum Looks on the Bright Side of Rape

Santorum spews out some froth:

SANTORUM: Well, you can make the argument that if she doesn’t have this baby, if she kills her child, that that, too, could ruin her life. And this is not an easy choice. I understand that. As horrible as the way that that son or daughter and son was created, it still is her child. And whether she has that child or doesn’t, it will always be her child. And she will always know that. And so to embrace her and to love her and to support her and get her through this very difficult time, I’ve always, you know, I believe and I think the right approach is to accept this horribly created — in the sense of rape — but nevertheless a gift in a very broken way, the gift of human life, and accept what God has given to you. As you know, we have to, in lots of different aspects of our life. We have horrible things happen. I can’t think of anything more horrible. But, nevertheless, we have to make the best out of a bad situation.