US Senator Dick Durbin Tells Americans to Boycott the Bank of America for Ripping Off Customers
Submitted by BuzzFlash on Thu, 10/06/2011 – 9:09pm.
MARK KARLIN, EDITOR OF BUZZFLASH AT TRUTHOUT
Sen. Dick Durbin (D-Illinois) took to the Senate floor this week to denounce how Bank of America is gouging Americans through excessive charges on debit card “swipe fees.”
Debit card swipes, according to the Federal Reserve Bank, cost at most 12 cents (as low as 4 cents) to process, but the banks have historically charged, according to Durbin, on average 44 cents to the retailer. On October 1, a new law went into effect that put a ceiling on the swipe fees at about 24 cents. So, the Bank of America and other banks “too big to fail” are still getting at least a 100 percent profit for every debit card transaction, which is crippling some small businesses.
Moreover, the Bank of America represents the greed that is at the heart of Wall Street by not being content with a 100 percent profit. To circumvent the cap on grossly excessive swipe fees, the Bank of America is now going to charge customers $5 a month as a debit card “use fee.”