By Kenneth Long on October 31, 2011

SunTrust and Regions Bank announced that they will reverse their plans to charge debit card fees. Furthermore, any charges already levied will be fully refunded.

SunTrust's $5 a month debit card fee began in June 2011, with Regions Bank following suit in October with its own $4 a month fee. However, when SunTrust announced it would undo its debit card fees, Regions Bank responded in kind the same day.

There is growing anticipation that Bank of America will give in to the pressure to end its debit card fees. Unlike the others, B of A has not actually begun charging its fees, rather it announced that such fees would begin in 2012.

The debit card fees stoked the ire of disenfranchised consumers who were already bitter about having big banks bailed out using taxpayer dollars. With Bank of America's announcement to begin charging $5 a month to use its debit card, that clearly became the straw that broke the camel's back.

Thousands of defections have already occurred. Community banks and credit unions have reported massive increases in new account openings. Many have directly targeted these consumers as an easy way to expand their customer base.

On the horizon is National Fire your Bank Day, which is slated for November 15, 2011. Clearly any bank that wants to avoid a mass exodus of clients may want to rethink being the target of such campaigns to balance the banking marketplace.

This could be good for smaller banks and consumers. After all, maybe if banks who are too big to fail lose market share, they just might find themselves in fail-able territory.

For the record, Debtors Unite believes debit card fees are an abusive banking fee and should be eliminated from the schedule of fees by all consumer banks. At the same time, those banks deserve to set their own fee structure, and you deserve the choice of selecting a bank that does not charge abusive fees. As the saying goes, vote with your feet. Walk out and take you deposits to a bank that actually welcomes them!

By Kenneth Long on October 7, 2011

Let Tuesday November 15, 2011 be known as National Fire your Bank Day. Has your bank notified you that they plan to charge you a $5 monthly fee just to use your debit card? Is your bank planning to charge you $10, $15 or $20 a month for a checking account maintenance fee when other banks and credit unions offer one for free? Will another bank charge you a $5 ATM fee every time you try to access your money from a different bank?

Poll: Are you ready to take a stand against abusive fees charged by your bank? How did you respond to your bank's recent fee increases? I fired my bank!   43 I plan to stick with my bank even with the fee increases.   9 My bank or credit union already provides free checking.   47

The fees are piling up. Yet, you do not have to pay for a checking account. You can take advantage of free checking, free online billpay, free ATM access and free use of a debit card.

The big banks are ratcheting up their fees. They claim they are trying to satisfy shareholder demands for profit. Surely they have the right to pursue reasonable profits.

The problem is that the big banks are increasing fees not to replace lost debit card interchange fees. That might be part of the problem. However the main focus is trying to offset the massive loan losses they incurred for irresponsibly lending money to people with no income, no job or assets (NINJA loans). Since when does their problem become your problem?

Take Action and Take Back Control of your Banking

Are you inspired by Molly Katchpole and her petition of 150,000 customers who signed on to a request for Bank of America to reconsider their planned $5 monthly debit card fee? She promptly closed her account and delivered her petition to a branch office in Washington D.C. on October 6.

Some argue that some banks are too big to fail and therefore deserved the bailout. However, you may consider that helping the big banks get smaller might level the playing field. Maybe it is time that smaller banks get a fair chance.

Ask yourself if the financial institutions with the most consumer-friendly terms deserve to get your business? More importantly, do you deserve to receive the best terms on the deposits that your bank relies on to keep its doors open?

You can take action by moving your account to a bank that actually wants your business. Say no to monthly maintenance fees. Say no to debit card and ATM fees. Say yes to free checking and a financial institution that is there to serve you.

How to Find Free Checking

Smaller community banks are much more likely to offer free checking. You best bet for getting a truly free checking account experience is to join a credit union. Some credit unions have strict membership requirements while others allow almost anyone to join.

What makes credit unions special is that they are not-for-profit. Instead, you as a member are a part owner of your credit union. Most credit unions only charge enough on loans and other products to pay the bills and keep a small healthy reserve. Instead of siphoning off billions of dollars for stockholders, credit unions keep rates and fees to a minimum for their members.

If you want to fire your bank, consider doing so on November 15, 2011 to participate in National Fire your Bank Day. Furthermore, leave us a comment. Let others know how you developed the courage to make a change and to make a statement!

By Kenneth Long on October 6, 2011

Citi wants to make sure their fees are upfront and clear. By avoiding a monthly debit card fee (like Bank of America's $5 fee), they instead have chosen to hike the monthly maintenance fees on their checking accounts.

Indeed the last free checking option offered by Citi is being phased out. Their EZ Checking accounts will not longer be available.

Instead, you must choose between the following options:

Citibank Account

The Citibank Account (Citi's middle of the road option) will carry a new $20 monthly maintenance fee. No longer can you keep a minimum balance of 6 grand to avoid the fee. Now Citi will only waive the monthly maintenance fee if you keep at least $15,000 in combined balances for the entire month.

EZ Checking Account

The terms on the EZ Checking Account are also changing. Current customers could previously avoid the $15 monthly account charge by keeping at least $1,500 in the account. The new requirement is a $6,000 minimum balance. If you do not currently have an EZ Checking Account, you will have to choose a separate option. Citi has decided to phase out this option and is no longer offering it to new applicants.

Basic Banking Account

The monthly maintenance fee on Citi's Basic Banking Account is increasing from $8 to $10. Account holders used to be able to avoid the fee by making at least 5 transactions each month.

Now, you must either make at least one online payment and direct deposit each month, or meet the minimum balance requirement of $1,500. This is not an average monthly balance requirement either, meaning that if you allow your balance to drop slightly below $1,500 on any given day, you will be charged $10 for that month.

Customers are seeing red. Still, the bank insists their fees are upfront and transparent. Citi points out that their online banking will remain free. They also do not charge when cardholders use a non-Citi ATM.

How to Avoid Any Monthly Maintenance Fees on Checking Accounts

There is little good news here for the thrifty consumer. You have three choices.

Will you participate in National Fire your Bank Day?

1. Exceed the minimum balance requirements
2. Ignore the requirements and accept the fee
3. Find a new bank

Unfortunately, you will have very few choices for avoiding these types of fees if you are looking for a big bank. Most of these accounts are no longer free.

You can however avoid many of these increasing fees by switching to a community bank or credit union. You may have fewer access options from a bank with a smaller footprint, but your fees should be almost nil. It is up to you to determine if you can live without your bank. The question is, can they live without you?

By Kenneth Long on October 3, 2011

Bank of America is the first of the big banks to announce a $5 monthly debit card fee. The new fee will be imposed on any customer who uses their debit card for a purchase beginning in 2012.

Whether you swipe the card as credit or enter a PIN as a debit transaction, a single use of the card will trigger a $5 monthly fee. Unless you can gain a fee waiver, you are stuck paying the fee if you choose to use your debit card for purchases.

Will there be Any Fee Waivers?

Unfortunately, Bank of America has not yet released any guidance on which (if any) customers may be granted a waiver from the $5 debit card monthly fee. We expect that its best customers may potentially be extended a waiver of this fee, but we have not yet been supplied with this information. For example, Bank of America Advantage customers already receive checking account fee waivers, so we are watching to see if they will also be granted a waiver from the new fees.

Will the New Fees be Permanent?

Virtually nothing in the personal banking industry is permanent. That being said, there is evidence that these fees are here to stay.

While Chase and Wells Fargo tested $3 monthly debit card fees in certain states, SunTrust has also announced it will charge a $5 monthly fee. Industry analysts expect the debit card fees to be copied by all big banks.

There is the possibility that Big Banks' nemesis may pursue legislation against the debit card fees. After all, Senator Dick Durbin was instrumental in new rules that cap the debit interchange fees that merchants must pay. This saved merchants money, but it is also costing banks billions in fee revenue.

Will you participate in National Fire your Bank Day?

Senator Durbin also helped enact legislation that limited credit card issuers from increasing interest rates "at any time, and for any reason." Instead, they may only do so if your account falls at least 60 days delinquent.

How May I Avoid the $5 Debit Card Fees?

There are ways that you can avoid the $5 debit card fee even if waivers are not allowed. First, you may continue to bank with Bank of America but treat your debit card as simply an ATM card. After all, that is how these cards were initially used before they were branded with a Visa, MasterCard or American Express logo. You may use your Bank of America (or any other) credit card for purchases instead of using your debit card.

Of course Bank of America would love for you to use your credit card instead of your debit card. This increases the chance that you may carry a balance and therefore incur finance charges. Additionally, the debit card interchange fees do not apply to credit cards, thereby increasing revenue opportunities for the bank.

If you want to continue using a debit card but do not want to pay the $5 fee, then you may jump ship. It might be worth contacting the bank to request a waiver prior to leaving.

Some small banks will avoid charging debit card fees. These will be easy to find, since this will be part of their advertising. They want to gain new customers that are turned off by big fees charged by big banks.

Finally, credit unions continue to be the top choice by those who seek consumer-friendly financial services. Credit unions have avoided many of the other fees that banks have been testing, including checking account fees and debit card fees. Credit union membership is often limited, but you can usually find a credit union near you in which you qualify to join.