A little late with my post, but passing along the news story that Bank of America, the first to publicly announce plans to charge debit card users a monthly fee of $5, decided November 1st to reverse its decision. One compelling reason may have had something to do with the over 300,000 signatures obtained on a petition protesting Bank of America’s decision to start charging.
Although banks may have changed their business strategy, and reversed their plans to charge monthly fees for use of a debit card, coupled with at least one posted response citing Mastercard and Visa setting low to no liability limits due to fraudulent activity on a debit card account, my position on debit cards remains unchanged.
You have to experience debit card fraud for yourself personally, or in my case three times, to appreciate that while you may not have ultimate liability for the illegal activity and unlawful withdrawals from your account, you will still be out of your funds and at the mercy of the financial institution to put them back.
If during the time funds were inappropriately taken and the time the bank puts your funds back into your account other bills such as your mortgage and credit cards were due, you may not be able to pay those bills timely, which could have a negative impact on your credit score and history.
In one actual case with a client, the unlawful withdrawal from the company account occurred in February. They are still waiting for the bank to put their funds back, some nine months later. They have, however, been told by the bank that they won;t be responsible for the fraudulent activity – lot’s of help that has been without use of their funds for so ling.
It there any reason why you can’t abandon your debit card, return to a traditional credit card, and pay the balance off each month?
Here’s the link to an article: