President Obama has expressed his frustration with Bank of America for charging its customers a new $5 monthly fee for using their debit card.
“You don’t have some inherent right just to get a certain amount of profit if your customers are being mistreated,” Obama said, NAFCU.org reports.
Obama said that the bank’s decision highlights the need for someone whose sole responsibility is looking out for consumers, making a reference to the newly created Consumer Financial Protection Bureau.
New reports indicate that Bank of America’s announcement will lead many of its customers to switch to another institution.
Rep. Brad Miller (D-N.C.) has proposed a bill in the House that will make it easier for account holders to change banks.
The bill, titled the Freedom and Mobility in Consumer Banking Act, is being reviewed by Sen. Dick Durbin (D-Ill.), who championed a federal regulation that drastically cut into the interchange revenue collected by the largest U.S. banks, prompting new fees for large banks nationwide.
Miller said that larger banks would be reluctant to introduce new fees in response to the debit interchange rule if they faced greater competition, NAFCU.org reports.
Durbin is also encouraging consumers who hold accounts at banks that are raising and adding fees to switch banks.