The recent decision by many leading banks to introduce charges on debit cards will lead to many customers shifting to local smaller banks.
Bank of America’s decision to introduce $5 charges per month has met with loud criticism, including customers who were irked at having to pay to use their own money.
A resident of Salt Lake Robby Woodleff said “What I would like to see is (people) switching from (big banks) to local banks and credit unions, the additional fees would hurt low-income consumers the most, especially people like himself who make close to minimum wage.
In the wake of the announcement, a number of Utah credit unions have experienced a jump in membership. Regional president of Heritage West Credit Union Bruce Bryan said “We’ve seen a steady increase over the last week to 10 days, The consumers that come in have stated the reason is they want a better deal than the banks who charge (debit card fees).
“They are saying, ‘I shouldn’t have to pay five dollars a month to use my debit card to make (a) purchase.'”
These recently implemented regulations severely impact organizations with greater than $10 Billion worth, however it will have not impact smaller local banks or credit unions.
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