Bank of America Cancels Swipe Fee – The Little Guy Wins

November 8, 2011

Hartford, CT – Senator Len Fasano (R-North Haven) is pleased that Bank of America and other banks have decided to cancel their swipe fee program. Senator Fasano was very vocal asking consumers to join him in pulling their money out of Bank of America in protest.

“People took a stand and voiced their anger over the idea of being charged $5 dollars a month to use their debit card and it appears the banks have listened. This is a great example of how standing up for your rights as a consumer can help the little guy win,” said Senator Len Fasano.

Last year’s Dodd-Frank financial regulation overhaul included a provision which caps the fee banks can charge merchants when you use your debit card for a purchase. Instead of being able to collect 44 cents from merchants banks will only be allowed to collect 24 cents. The new rules apply to banks with $10 billion or more in assets.

Many of the big banks claimed losing that revenue would cost financial institutions $6.6 billion.

“The Dodd – Frank legislation is regressive and hurts people – instead of helping them. The likelihood that we will see more of these new fees crop up is high,” said Senator Fasano. “It will again be up to the consumer to take a stand and I am hopeful the message will again be heard loud and clear.”