Bank of America nixes $5 debit-card fee

NEW YORK (AP) — Bank of America Corp. is scrapping its plan to charge a $5 monthly fee for making debit-card purchases after an uproar and threatened exodus by customers.

The about-face comes as customers petitioned the bank, and mobilized to close their accounts and take their business elsewhere. The outcry had already prompted other major banks, including JPMorgan Chase & Co. and Wells Fargo & Co., to cancel tests of similar debit-card fees last week.

SunTrust Banks and Regions Financial Corp. followed suit on Monday.

Anne Pace, a spokeswoman for Bank of America, declined to say whether the company experienced a spike in account closures since announcing plans for the fee in September.

But in a statement today, David Darnell, co-chief operating officer for Bank of America, said the decision was based on customer feedback. "Our customers' voices are most important to us. As a result, we are not currently charging the fee and will not be moving forward with any additional plans to do so," he said.

Pace added that a "changing competitive marketplace" also played a role.