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{{Short description|2011 American consumer activism initiative}} |
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[[File:Bank Transfer Day poster..jpg|thumb|300px|$100 Bank Transfer Day poster]] |
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| title= [Bank Transfer Day] fundamentally doesn't qualify as a boycott |
| title= [Bank Transfer Day] fundamentally doesn't qualify as a boycott |
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| author= Sigurd Olin Christian |
| author= Sigurd Olin Christian |
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| website= [[Facebook]] |
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| date = November 1, 2011 | |
| date = November 1, 2011 | access-date = November 1, 2011 |
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| url = https://www.facebook.com/permalink.php?story_fbid=294652717225888&id=281139538577206 |
| url = https://www.facebook.com/permalink.php?story_fbid=294652717225888&id=281139538577206 |
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}}</ref> initiative calling for a voluntary switch from [[commercial bank]]s to not-for-profit [[credit union]]s by November 5, 2011.<ref>{{cite web | url= |
}}</ref> initiative calling for a voluntary switch from [[commercial bank]]s to not-for-profit [[credit union]]s by November 5, 2011.<ref>{{cite web | url=https://abcnews.go.com/blogs/business/2011/10/bank-transfer-day-gains-momentum-on-facebook/ | title='Bank Transfer Day' Gains Momentum on Facebook | publisher= Consumer Report (blog of [[ABC News]]) | date=October 18, 2011 | access-date=October 20, 2011 | author=Little, Lyneka}}</ref><ref>{{cite web|author=Staff |url=http://www.myfoxboston.com/dpps/news/bank-transfer-day-movement-goes-viral-dpgoha-20111013-fc_15452620 |title='Bank Transfer Day' Movement Goes Viral |publisher=[[WFXT]] |date=October 13, 2011 |access-date=October 20, 2011 }}{{dead link|date=October 2016 |bot=InternetArchiveBot |fix-attempted=yes }}</ref><ref>{{cite news | url=https://articles.latimes.com/2011/nov/04/business/la-fi-bank-transfer-20111105 | title=One Facebook post becomes national movement to abandon big banks | newspaper= [[Los Angeles Times]] | date=November 4, 2011 | access-date=November 6, 2011 |author1=Pfeifer, Stuart |author2=Reckard, Scott |name-list-style=amp }}</ref> As of October 15, 2011, a [[Facebook]] page devoted to the effort had drawn more than 54,900 "likes".<ref name=nytimes1>{{registration required|date=October 2011}} {{Cite news|title=Online Banking Keeps Customers on Hook for Fees|url=https://www.nytimes.com/2011/10/16/business/online-banking-keeps-customers-on-hook-for-fees.html|access-date= October 17, 2011| work = [[The New York Times]] |author=Schwartz, Nelson D.|date=October 15, 2011}}</ref> [[Debit card]] fees of $5 a month from the [[Bank of America]] are among steps leading to the Bank Transfer Day protest with a November 5 deadline.<ref> |
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{{cite web | author = O'Connell, Brian | title = Bank Transfer Day: A Protest with Your Money | url = https://finance.yahoo.com/banking-budgeting/article/113658/bank-transfer-day-mainstreet?mod=bb-budgeting | date = October 12, 2011 | |
{{cite web | author = O'Connell, Brian | title = Bank Transfer Day: A Protest with Your Money | url = https://finance.yahoo.com/banking-budgeting/article/113658/bank-transfer-day-mainstreet?mod=bb-budgeting | date = October 12, 2011 | access-date = October 19, 2011 | publisher = [[TheStreet.com#MainStreet.com|MainStreet.com]] (via [[Yahoo! Finance]])}}</ref> [[Occupy Wall Street]] participants support the effort<ref>[http://www.sltrib.com/sltrib/money/52737352-79/bank-banks-lake-salt.html.csp Fed-up customers taking action against big banks], The [[Salt Lake Tribune]]</ref> even though the events are not related.<ref>[http://www.myfoxmemphis.com/dpps/news/bank-transfer-day-movement-goes-viral-dpgoha-20111013-fc_15452620 'Bank Transfer Day' Movement Goes Viral] {{webarchive |url=https://web.archive.org/web/20111015180756/http://www.myfoxmemphis.com/dpps/news/bank-transfer-day-movement-goes-viral-dpgoha-20111013-fc_15452620 |date=October 15, 2011 }} on [[WHBQ-TV]], FOX News</ref> Among the detractors were [[Occupy Los Angeles]] participants: Sigurd Olin Christian, creator of the Bank Transfer Day event, stated that "he was accosted by Occupy Los Angeles organizers and has even received threatening phone calls" because of his pro-credit union rather than anti-bank approach.<ref name=cujournal/> |
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Christian, an art gallery owner in [[Los Angeles]], [[California]], said he was dissatisfied with Bank of America's "ridiculous fees and poor customer service."<ref>{{cite web | author = Miller, Jen A. | date = October 15, 2011 | title = Fed Up L.A. Gallery Owner Launches 'Bank Transfer Day' | url = http://www.interest.com/savings/advice/fed-up-l-a-gallery-owner-launches-bank-transfer-day/ | publisher = Savings Blog (blog of [[interest.com]]) | |
Christian, an art gallery owner in [[Los Angeles]], [[California]], said he was dissatisfied with Bank of America's "ridiculous fees and poor customer service."<ref>{{cite web | author = Miller, Jen A. | date = October 15, 2011 | title = Fed Up L.A. Gallery Owner Launches 'Bank Transfer Day' | url = http://www.interest.com/savings/advice/fed-up-l-a-gallery-owner-launches-bank-transfer-day/ | publisher = Savings Blog (blog of [[interest.com]]) | access-date = October 20, 2011 | archive-date = December 28, 2011 | archive-url = https://web.archive.org/web/20111228052119/http://www.interest.com/savings/advice/fed-up-l-a-gallery-owner-launches-bank-transfer-day/ | url-status = dead }}</ref> He created an event on Facebook called “Bank Transfer Day” and invited his friends to close their accounts at big for-profit banks and move their money to credit unions by November 5, 2011. Christian chose November 5 because of its association with [[Guy Fawkes]], who tried to [[Gunpowder Plot|blow up the British House of Lords]] and bring [[Catholic Church|Catholic]] rule back to the United Kingdom, but was captured on that date in 1605.<ref>{{cite news | author = White, Martha C. | date = October 10, 2011 | title = Wall Street Protests Get Specific: Could 'Bank Transfer Day' Pit Americans Against Their Big Banks? | publisher = Moneyland (blog of [[Time (magazine)|Time]]) | url = http://moneyland.time.com/2011/10/10/bank-transfer-day-urges-americans-to-leave-big-banks/ | access-date = October 19, 2011}}</ref><ref>{{cite web | url=http://www.cutimes.com/2011/10/19/bank-transfer-day-a-good-time-to-be-a-cu | title=Bank Transfer Day: A Good Time to Be a CU | work = Credit Union Times | date=October 19, 2011 | access-date=October 20, 2011 | author=Digiovanni, Myriam}}</ref><ref>[http://www.cutimes.com/2011/10/10/bank-transfer-day-causes-cu-buzz "'Bank Transfer Day' Causes CU Buzz."]{{spaced ndash}}from [http://www.cutimes.com Credit Union Times]</ref> This has been a continuing observance.<ref>{{Cite web |url=https://matchfinancial.com/moneyblog/credit-unions-bank-transfer-day/ |title=Credit unions salivating ahead of Bank Transfer Day |access-date=2016-11-05 |archive-url=https://web.archive.org/web/20161105225656/https://matchfinancial.com/moneyblog/credit-unions-bank-transfer-day/ |archive-date=2016-11-05 |url-status=dead }}</ref> |
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==Overview== |
==Overview== |
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Bank Transfer Day encourages bank customers to transfer their cash out of big banks to credit unions. The event is in response to what critics regard as excessive fees that big banks plan to roll out, notably Bank of America's decision to charge its debit card users with a $5 monthly fee and [[Wells Fargo]]'s $3 charge of the same. The Facebook page for the event states the following: "Together we can ensure that these banking institutions will always remember the 5th of November!! If the 99% removes our funds from the major banking institutions to non-profit credit unions on or by this date, we will send a clear message to the 1% that conscious consumers won't support companies with unethical business practices."<ref name=cnbc1>{{cite web |
Bank Transfer Day encourages bank customers to transfer their cash out of big banks to credit unions. The event is in response to what critics regard as excessive fees that big banks plan to roll out, notably Bank of America's decision to charge its debit card users with a $5 monthly fee and [[Wells Fargo]]'s $3 charge of the same. The Facebook page for the event states the following: "Together we can ensure that these banking institutions will always remember the 5th of November!! If the 99% removes our funds from the major banking institutions to non-profit credit unions on or by this date, we will send a clear message to the 1% that conscious consumers won't support companies with unethical business practices."<ref name=cnbc1>{{cite web |
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| author = Thompson, Cadie | date = October 7, 2011 | title = Occupy Wall Street Backs a Nationwide Boycott Against Banks | url = https://www.cnbc.com/id/44800021 | publisher = NetNet with John Carney (blog of [[CNBC]]) | |
| author = Thompson, Cadie | date = October 7, 2011 | title = Occupy Wall Street Backs a Nationwide Boycott Against Banks | url = https://www.cnbc.com/id/44800021 | publisher = NetNet with John Carney (blog of [[CNBC]]) | access-date = October 19, 2011}}</ref> |
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Similar sentiments predate the Bank Transfer Day by at least several years. In 2009, finance writer and radio host [[Dave Ramsey]] wrote: "I haven’t done business with big banks for years, primarily because of the awful customer service you get at most of them. I like local, community banks, and I believe whole-heartedly in credit unions. As a rule, these institutions practice excellent customer service. Plus, most of them didn’t get mixed up the sub-prime debacle."<ref>Ramsey, Dave (2009). "[http://finance.townhall.com/columnists/daveramsey/2009/04/22/banks_versus_credit_unions Banks Versus Credit Unions]" TownHall.com, 22 April 2009</ref> Similarly, [[Suze Orman]] was quoted in 2009 characterizing large banks as often doing "anything to increase earnings and profits" for shareholders, while credit unions, accountable to their members, are more typically "ethical and honest".<ref>Bissonette, Zak (2009). [http://www.dailyfinance.com/2009/11/04/suze-orman-says-switch-to-a-credit-union/ Suze Orman says: Switch to a Credit Union], Daily Finance.com, retrieved 25 September 2014</ref> In August 2011, [[Clark Howard]] advised his readers to be wary of "giant, monster megabanks" and to seek better interest rates and customer service at smaller banks or credit unions.<ref>http://articles.chicagotribune.com/2011-08-05/site/sc-cons-0804-karpspend-20110805_1_money-advice-clark-howard-smart-spending</ref> |
Similar sentiments predate the Bank Transfer Day by at least several years. In 2009, finance writer and radio host [[Dave Ramsey]] wrote: "I haven’t done business with big banks for years, primarily because of the awful customer service you get at most of them. I like local, community banks, and I believe whole-heartedly in credit unions. As a rule, these institutions practice excellent customer service. Plus, most of them didn’t get mixed up the sub-prime debacle."<ref>Ramsey, Dave (2009). "[http://finance.townhall.com/columnists/daveramsey/2009/04/22/banks_versus_credit_unions Banks Versus Credit Unions]" TownHall.com, 22 April 2009</ref> Similarly, [[Suze Orman]] was quoted in 2009 characterizing large banks as often doing "anything to increase earnings and profits" for shareholders, while credit unions, accountable to their members, are more typically "ethical and honest".<ref>Bissonette, Zak (2009). [http://www.dailyfinance.com/2009/11/04/suze-orman-says-switch-to-a-credit-union/ Suze Orman says: Switch to a Credit Union], Daily Finance.com, retrieved 25 September 2014</ref> In August 2011, [[Clark Howard]] advised his readers to be wary of "giant, monster megabanks" and to seek better interest rates and customer service at smaller banks or credit unions.<ref>{{Cite web|date=2016-06-26|title=Spending-smart advice from author and consumer advocate Clark Howard - tribunedigital-chicagotribune|url=http://articles.chicagotribune.com/2011-08-05/site/sc-cons-0804-karpspend-20110805_1_money-advice-clark-howard-smart-spending|archive-url=https://web.archive.org/web/20160626205936/http://articles.chicagotribune.com/2011-08-05/site/sc-cons-0804-karpspend-20110805_1_money-advice-clark-howard-smart-spending|url-status=dead|archive-date=2016-06-26|access-date=2021-03-24}}</ref> |
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==Credit unions realize increased deposits== |
==Credit unions realize increased deposits== |
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The [[Credit Union National Association]] (CUNA) said the association's web site aimed at informing customers about credit union services has seen traffic double. CUNA members reported an increase in account openings. According to Bill Cheney, CUNA's president and chief executive officer, the current surge in account openings has been more sustained than similar surges in the past.<ref>{{cite news | author = Palmer, Alex | date = October 15, 2011 |
The [[Credit Union National Association]] (CUNA) said the association's web site aimed at informing customers about credit union services has seen traffic double. CUNA members reported an increase in account openings. According to Bill Cheney, CUNA's president and chief executive officer, the current surge in account openings has been more sustained than similar surges in the past.<ref>{{cite news | author = Palmer, Alex | date = October 15, 2011 |
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| title = Credit Unions Boom – A Bank-Fee Revolt | work = [[New York Post]] | |
| title = Credit Unions Boom – A Bank-Fee Revolt | work = [[New York Post]] | access-date = October 19, 2011 | url = http://www.nypost.com/p/news/business/credit_unions_boom_JSBoBmRnVSPhtGNxutCyRM}}</ref> |
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Between September 29, the day that Bank of America announced its (now defunct) monthly fee for debit card transactions, and November 2, credit unions received $4.5 billion in funds and 440,000<ref name=cujournal>{{Cite journal|last=Passman|first=Aaron|title=How Kristen Christian Came To Launch Bank Transfer Day|journal=Credit Union Journal|date=December 19, 2011|page=23}}</ref><ref>The original estimate from CUNA was 650,000, but was later revised to 440,000.</ref> new customers, which equated to a 50% increase in new accounts.<ref>{{cite news| url = http://bostonherald.com/business/general/view.bg?articleid=1379155 |date = November 7, 2011|newspaper=[[Boston Herald]]|title=Mass. credit unions count 20,000 bank transfers}}</ref><ref>(November 7, 2011). [http://www.foxbusiness.com/personal-finance/2011/11/07/credit-unions-feel-boost-from-bank-transfer-day/ "Credit Unions Feel Boost from Bank Transfer Day."] [http://www.foxbusiness.com Fox Business News]. Accessed November 2011.</ref> CUNA claimed that on November 5, 2011 alone, approximately 40,000 people joined credit unions, with credit unions realizing $80 million in new account funds.<ref>Berman, Jillian (November 9, 2011).[ |
Between September 29, the day that Bank of America announced its (now defunct) monthly fee for debit card transactions, and November 2, credit unions received $4.5 billion in funds and 440,000<ref name=cujournal>{{Cite journal|last=Passman|first=Aaron|title=How Kristen Christian Came To Launch Bank Transfer Day|journal=Credit Union Journal|date=December 19, 2011|page=23}}</ref><ref>The original estimate from CUNA was 650,000, but was later revised to 440,000.</ref> new customers, which equated to a 50% increase in new accounts.<ref>{{cite news| url = http://bostonherald.com/business/general/view.bg?articleid=1379155 |date = November 7, 2011|newspaper=[[Boston Herald]]|title=Mass. credit unions count 20,000 bank transfers}}</ref><ref>(November 7, 2011). [http://www.foxbusiness.com/personal-finance/2011/11/07/credit-unions-feel-boost-from-bank-transfer-day/ "Credit Unions Feel Boost from Bank Transfer Day."] [http://www.foxbusiness.com Fox Business News]. Accessed November 2011.</ref> CUNA claimed that on November 5, 2011 alone, approximately 40,000 people joined credit unions, with credit unions realizing $80 million in new account funds.<ref>Berman, Jillian (November 9, 2011).[https://www.huffingtonpost.com/2011/11/09/bank-transfer-day-40000-join-credit-unions_n_1083744.html "Bank Transfer Day Pushes 40,000 To Join Credit Unions, Survey Finds."] [https://www.huffingtonpost.com Huffington Post]. Accessed November 2011.</ref><ref>(November 9, 2011.) [http://www.cuna.org/newsnow/11/wash110811-2.html "CUNA survey: 40k members, $80M in savings on BTD."] {{webarchive|url=https://web.archive.org/web/20111111150209/http://www.cuna.org/newsnow/11/wash110811-2.html |date=2011-11-11 }} [http://www.cuna.org Credit Union National Association]. Accessed November 2011.</ref> In a December newsletter, CUNA estimated that nearly 700,000 consumers had opened new accounts at credit unions between late September and the November 5 target date,<ref>{{cite web | url=http://volunteernetwork.cuna.org/download/DNL_dec2011.pdf | title=Bank Transfer Day Spurs Record Member Growth | work=Credit Union Directors Newsletter, Vol. 35, Issue 12 | date=December 2011 | access-date=January 12, 2012 | author=Credit Union National Association, Inc. | archive-url=https://web.archive.org/web/20130925172338/http://volunteernetwork.cuna.org/download/DNL_dec2011.pdf | archive-date=2013-09-25 | url-status=dead }}</ref> although an article published in ''[[American Banker]]'' in early December cites CUNA as offering a revised estimate of 214,000 new customers in October.<ref>{{cite web | url=http://www.americanbanker.com/issues/176_234/credit-unions-cuna-membership-bank-transfer-day-1044599-1.html | title=Credit Unions Eat Crow On Customer Numbers | work=[[American Banker]] | date=December 5, 2011 | access-date=January 12, 2012 | author=Stewart, Jackie}}</ref> |
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Small banks and credit unions with assets valued at less than $10 billion can afford to offer extra rewards and avoid imposing additional fees, as they are exempt from the caps imposed by the Durbin Amendment.<ref>{{Cite news|url=http://citizensvoice.com/news/small-banks-credit-unions-capitalize-on-big-bank-fumbling-1.1226472#axzz1dRoXbARN|title=Small banks, credit unions capitalize on big bank fumbling|newspaper=[[Citizen's Voice]] |author=David Falchek|date=2 November 2011}}</ref> |
Small banks and credit unions with assets valued at less than $10 billion can afford to offer extra rewards and avoid imposing additional fees, as they are exempt from the caps imposed by the Durbin Amendment.<ref>{{Cite news|url=http://citizensvoice.com/news/small-banks-credit-unions-capitalize-on-big-bank-fumbling-1.1226472#axzz1dRoXbARN|title=Small banks, credit unions capitalize on big bank fumbling|newspaper=[[Citizen's Voice]] |author=David Falchek|date=2 November 2011}}</ref> |
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==Background== |
==Background== |
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The planned debit transaction fee increase is reportedly caused by the [[Dodd–Frank Wall Street Reform and Consumer Protection Act#Legislative response and passage|Durbin Amendment]] that went into effect on October 1, which is an addition to the [[Dodd–Frank Wall Street Reform and Consumer Protection Act]], a U.S. [[federal statute]]<ref name=cnbc1 /> The Durbin Amendment limits the fees that banks can charge merchants when a consumer swipes their debit card from 44 cents to 24 cents. According to experts, a customer making 25 debit card transactions a month would lead the bank to lose $5 it would have made before the Durbin Amendment. As a result, it has been suggested<sup>(by whom?)</sup> that the larger banks, including Wells Fargo and [[SunTrust]], are making up for lost revenue by charging for debit card use, the cost ranging anywhere from $3 to $5 per month, although no specific cause/effect relationship has been established.<ref>{{cite web |
The planned debit transaction fee increase is reportedly caused by the [[Dodd–Frank Wall Street Reform and Consumer Protection Act#Legislative response and passage|Durbin Amendment]] that went into effect on October 1, which is an addition to the [[Dodd–Frank Wall Street Reform and Consumer Protection Act]], a U.S. [[federal statute]]<ref name=cnbc1 /> The Durbin Amendment limits the fees that banks can charge merchants when a consumer swipes their debit card from 44 cents to 24 cents. According to experts, a customer making 25 debit card transactions a month would lead the bank to lose $5 it would have made before the Durbin Amendment. As a result, it has been suggested<sup>(by whom?)</sup> that the larger banks, including Wells Fargo and [[SunTrust]], are making up for lost revenue by charging for debit card use, the cost ranging anywhere from $3 to $5 per month, although no specific cause/effect relationship has been established.<ref>{{cite web |
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| author = Driscoll, Emily | date = October 11, 2011 | title = How To Avoid Bank Fees | url = http://www.foxbusiness.com/personal-finance/2011/10/11/more-bank-fees-are-coming/ | publisher = [[Fox Business Network]] | |
| author = Driscoll, Emily | date = October 11, 2011 | title = How To Avoid Bank Fees | url = http://www.foxbusiness.com/personal-finance/2011/10/11/more-bank-fees-are-coming/ | publisher = [[Fox Business Network]] | access-date = October 19, 2011}}</ref> |
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Democratic lawmakers asked the [[United States Department of Justice|U.S. Justice Department]] to investigate the large banks that recently started charging debit card fees. A group of four congressmen claimed that major banks like [[Chase (bank)|Chase]] and Wells Fargo may have violated antitrust laws. In a letter to [[United States Attorney General|U.S. Attorney General]] [[Eric Holder]], dated October 13, 2011, [[United States House of Representatives|U.S. Representative]] [[Peter Welch]] and four other [[Democratic Party (United States)|Democrats]] asked Holder to investigate whether big banks violated [[antitrust]] laws before announcing the fees.<ref>{{cite web |
Democratic lawmakers asked the [[United States Department of Justice|U.S. Justice Department]] to investigate the large banks that recently started charging debit card fees. A group of four congressmen claimed that major banks like [[Chase (bank)|Chase]] and Wells Fargo may have violated antitrust laws. In a letter to [[United States Attorney General|U.S. Attorney General]] [[Eric Holder]], dated October 13, 2011, [[United States House of Representatives|U.S. Representative]] [[Peter Welch]] and four other [[Democratic Party (United States)|Democrats]] asked Holder to investigate whether big banks violated [[antitrust]] laws before announcing the fees.<ref>{{cite web | title = Welch to Holder: New Debit Card Fees Warrant Federal Anti-Trust Investigation | url = http://welch.house.gov/index.php?option=com_content&view=article&id=1697:welch-to-holder-new-debit-card-fees-warrant-federal-anti-trust-investigation&catid=39:2011-press-releases&Itemid=32 | access-date = October 17, 2011 | author = Coriell, Scott | archive-date = October 18, 2011 | archive-url = https://web.archive.org/web/20111018214022/http://www.welch.house.gov/index.php?option=com_content&view=article&id=1697:welch-to-holder-new-debit-card-fees-warrant-federal-anti-trust-investigation&catid=39:2011-press-releases&Itemid=32 | url-status = dead }}</ref><ref>{{Cite web|title=Letter Calling for Attorney General Investigation of Bank Fees|url=http://grijalva.house.gov/uploads/Letter%20Calling%20for%20Attorney%20General%20Investigation%20of%20Bank%20Fees%20Oct%2013.pdf|publisher=[[United States House of Representatives]]|access-date=October 17, 2011|author=Welch, Peter|author-link=Peter Welch|date=13 October 2011|archive-date=26 December 2011|archive-url=https://web.archive.org/web/20111226130357/http://grijalva.house.gov/uploads/Letter%20Calling%20for%20Attorney%20General%20Investigation%20of%20Bank%20Fees%20Oct%2013.pdf|url-status=dead}}</ref> The four Congressmen said the timing of the new fees from each bank is suspicious.<ref>{{cite web | author = Staff | date = October 13, 2011 | title = Democrats Ask Justice Dept. To Probe Bank Fees | url = http://www.foxbusiness.com/industries/2011/10/13/democrats-ask-justice-dept-to-probe-bank-fees/ | publisher = [[Reuters]] (via [[Fox Business Network]]) | access-date = October 19, 2011 }}</ref> |
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| title = Welch to Holder: New Debit Card Fees Warrant Federal Anti-Trust Investigation | url = http://welch.house.gov/index.php?option=com_content&view=article&id=1697:welch-to-holder-new-debit-card-fees-warrant-federal-anti-trust-investigation&catid=39:2011-press-releases&Itemid=32 | accessdate = October 17, 2011 | author= Coriell, Scott}}</ref><ref>{{Cite web|title=Letter Calling for Attorney General Investigation of Bank Fees|url=http://grijalva.house.gov/uploads/Letter%20Calling%20for%20Attorney%20General%20Investigation%20of%20Bank%20Fees%20Oct%2013.pdf|publisher=[[United States House of Representatives]]|accessdate=October 17, 2011|author=[[Peter Welch|Welch, Peter]]|format=PDF|date=13 October 2011}}</ref> The four Congressmen said the timing of the new fees from each bank is suspicious.<ref>{{cite web | author = Staff | date = October 13, 2011 | title = Democrats Ask Justice Dept. To Probe Bank Fees | url = http://www.foxbusiness.com/industries/2011/10/13/democrats-ask-justice-dept-to-probe-bank-fees/ | publisher = [[Reuters]] (via [[Fox Business Network]]) | accessdate = October 19, 2011 }}</ref> |
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On October 12, 2011, U.S. Representatives [[Jason Chaffetz]] (R-UT) and [[Bill Owens (congressman)|Bill Owens]] (D-NY) introduced a bill that would repeal the Durbin Amendment. According to Chaffetz, repealing the Durbin Amendment would fix the disastrous consequences of this bill.<ref>{{cite news | author = Touryalai, Halah | date = October 13, 2011 | title = New Bill Aims To Kill Durbin's Debit Card Fees | url = https://www.forbes.com/sites/halahtouryalai/2011/10/13/new-bill-could-kill-durbins-debit-card-fees/ | publisher = Adviser Network (blog of [[Forbes]]) | |
On October 12, 2011, U.S. Representatives [[Jason Chaffetz]] (R-UT) and [[Bill Owens (congressman)|Bill Owens]] (D-NY) introduced a bill that would repeal the Durbin Amendment. According to Chaffetz, repealing the Durbin Amendment would fix the disastrous consequences of this bill.<ref>{{cite news | author = Touryalai, Halah | date = October 13, 2011 | title = New Bill Aims To Kill Durbin's Debit Card Fees | url = https://www.forbes.com/sites/halahtouryalai/2011/10/13/new-bill-could-kill-durbins-debit-card-fees/ | publisher = Adviser Network (blog of [[Forbes]]) | access-date = October 19, 2011}}</ref> However, U.S. Representative [[Spencer Bachus]] (R-AL), who chairs the [[House Banking Committee]], has suggested that revisiting the Durbin Amendment was a low priority. It is unclear whether the bill will ever see a vote.<ref>{{cite news |url=http://boss.blogs.nytimes.com/2011/10/17/in-battle-with-merchants-banks-still-hope-to-overturn-durbin-amendment/ |title=In Battling Merchants, Banks Still Hope To Overturn Durbin Rules |access-date=October 19, 2011 |author=Mandelbaum, Robb |date=October 17, 2011 |department=You're the Boss |newspaper=The New York Times}}</ref> |
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On November 1, 2011, Bank of America announced plans to cancel its $5 debit card fee in response to customer feedback.<ref>{{Cite web| url = http://www.indystar.com/article/20111101/BUSINESS/111010397/Bank-America-nixes-5-debit-card-fee | title = Bank of America nixes $5 debit card fee | |
On November 1, 2011, Bank of America announced plans to cancel its $5 debit card fee in response to customer feedback.<ref>{{Cite web| url = http://www.indystar.com/article/20111101/BUSINESS/111010397/Bank-America-nixes-5-debit-card-fee | title = Bank of America nixes $5 debit card fee | access-date = November 1, 2011 | author = Choi, Candice | date = November 1, 2011 | publisher = [[Associated Press]] (republished on [[The Indianapolis Star]])}}</ref> |
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==See also== |
==See also== |
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[[Category:Economic problems]] |
[[Category:Economic problems]] |
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[[Category:Occupy movement]] |
[[Category:Occupy movement]] |
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[[Category:OWS articles needing infoboxes]] |
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[[Category:November observances]] |
[[Category:November observances]] |
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[[Category:November 2011 events]] |
[[Category:November 2011 events in the United States]] |
Bank Transfer Day was a consumer activism[1] initiative calling for a voluntary switch from commercial banks to not-for-profit credit unions by November 5, 2011.[2][3][4] As of October 15, 2011, a Facebook page devoted to the effort had drawn more than 54,900 "likes".[5] Debit card fees of $5 a month from the Bank of America are among steps leading to the Bank Transfer Day protest with a November 5 deadline.[6] Occupy Wall Street participants support the effort[7] even though the events are not related.[8] Among the detractors were Occupy Los Angeles participants: Sigurd Olin Christian, creator of the Bank Transfer Day event, stated that "he was accosted by Occupy Los Angeles organizers and has even received threatening phone calls" because of his pro-credit union rather than anti-bank approach.[9]
Christian, an art gallery owner in Los Angeles, California, said he was dissatisfied with Bank of America's "ridiculous fees and poor customer service."[10] He created an event on Facebook called “Bank Transfer Day” and invited his friends to close their accounts at big for-profit banks and move their money to credit unions by November 5, 2011. Christian chose November 5 because of its association with Guy Fawkes, who tried to blow up the British House of Lords and bring Catholic rule back to the United Kingdom, but was captured on that date in 1605.[11][12][13] This has been a continuing observance.[14]
Bank Transfer Day encourages bank customers to transfer their cash out of big banks to credit unions. The event is in response to what critics regard as excessive fees that big banks plan to roll out, notably Bank of America's decision to charge its debit card users with a $5 monthly fee and Wells Fargo's $3 charge of the same. The Facebook page for the event states the following: "Together we can ensure that these banking institutions will always remember the 5th of November!! If the 99% removes our funds from the major banking institutions to non-profit credit unions on or by this date, we will send a clear message to the 1% that conscious consumers won't support companies with unethical business practices."[15]
Similar sentiments predate the Bank Transfer Day by at least several years. In 2009, finance writer and radio host Dave Ramsey wrote: "I haven’t done business with big banks for years, primarily because of the awful customer service you get at most of them. I like local, community banks, and I believe whole-heartedly in credit unions. As a rule, these institutions practice excellent customer service. Plus, most of them didn’t get mixed up the sub-prime debacle."[16] Similarly, Suze Orman was quoted in 2009 characterizing large banks as often doing "anything to increase earnings and profits" for shareholders, while credit unions, accountable to their members, are more typically "ethical and honest".[17] In August 2011, Clark Howard advised his readers to be wary of "giant, monster megabanks" and to seek better interest rates and customer service at smaller banks or credit unions.[18]
The Credit Union National Association (CUNA) said the association's web site aimed at informing customers about credit union services has seen traffic double. CUNA members reported an increase in account openings. According to Bill Cheney, CUNA's president and chief executive officer, the current surge in account openings has been more sustained than similar surges in the past.[19]
Between September 29, the day that Bank of America announced its (now defunct) monthly fee for debit card transactions, and November 2, credit unions received $4.5 billion in funds and 440,000[9][20] new customers, which equated to a 50% increase in new accounts.[21][22] CUNA claimed that on November 5, 2011 alone, approximately 40,000 people joined credit unions, with credit unions realizing $80 million in new account funds.[23][24] In a December newsletter, CUNA estimated that nearly 700,000 consumers had opened new accounts at credit unions between late September and the November 5 target date,[25] although an article published in American Banker in early December cites CUNA as offering a revised estimate of 214,000 new customers in October.[26]
Small banks and credit unions with assets valued at less than $10 billion can afford to offer extra rewards and avoid imposing additional fees, as they are exempt from the caps imposed by the Durbin Amendment.[27]
The planned debit transaction fee increase is reportedly caused by the Durbin Amendment that went into effect on October 1, which is an addition to the Dodd–Frank Wall Street Reform and Consumer Protection Act, a U.S. federal statute[15] The Durbin Amendment limits the fees that banks can charge merchants when a consumer swipes their debit card from 44 cents to 24 cents. According to experts, a customer making 25 debit card transactions a month would lead the bank to lose $5 it would have made before the Durbin Amendment. As a result, it has been suggested(by whom?) that the larger banks, including Wells Fargo and SunTrust, are making up for lost revenue by charging for debit card use, the cost ranging anywhere from $3 to $5 per month, although no specific cause/effect relationship has been established.[28]
Democratic lawmakers asked the U.S. Justice Department to investigate the large banks that recently started charging debit card fees. A group of four congressmen claimed that major banks like Chase and Wells Fargo may have violated antitrust laws. In a letter to U.S. Attorney General Eric Holder, dated October 13, 2011, U.S. Representative Peter Welch and four other Democrats asked Holder to investigate whether big banks violated antitrust laws before announcing the fees.[29][30] The four Congressmen said the timing of the new fees from each bank is suspicious.[31]
On October 12, 2011, U.S. Representatives Jason Chaffetz (R-UT) and Bill Owens (D-NY) introduced a bill that would repeal the Durbin Amendment. According to Chaffetz, repealing the Durbin Amendment would fix the disastrous consequences of this bill.[32] However, U.S. Representative Spencer Bachus (R-AL), who chairs the House Banking Committee, has suggested that revisiting the Durbin Amendment was a low priority. It is unclear whether the bill will ever see a vote.[33]
On November 1, 2011, Bank of America announced plans to cancel its $5 debit card fee in response to customer feedback.[34]
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