Rather, the debit card fee was one of many options available to banks to recoup their lost revenue resulting from the Dodd-Frank legislation. Many other banks decided to eliminate free checking accounts, or to raise the monthly fees on their checking accounts.
Disparaging the banks for toying with the idea of creating a monthly debit card is an ill-advised course of action. Bank of America should be commended for its forthrightness and transparency in announcing their new fee.
The main point is that Dodd-Frank – despite the self-proclaimed sagacity of its supporters – is causing banks to seek out ways to recover lost revenue.
During the anti-bank hysteria following the financial collapse of 2008, many members of Congress tried to score populist points by hammering the much maligned banks with punitive measures such as capping the merchant debit card fee.
But despite their best efforts, this legislation – like most others – will hurt average Americans instead of their intended target.
So when you are no longer able to find free checking accounts, or you discover new, quasi-hidden fees on your account, don’t mistakenly direct your anger at your bank. Be sure to thank the real culprits – Barney Frank, Christopher Dodd, and the other “omniscient” beings that dwell or formerly dwelled in the halls of Congress.