BOSTON — Bank of America's $3 hike in foreign ATM fees drew more fire last week from CUNA, vendors and outsiders.
The latest to attack the increase was U.S. PIRG, the consumer advocacy organization, again urging the public to start using credit unions to avoid the big bank's "double dipping" practice on surcharges.
Though there are fewer CU ATMs, "most credit unions waive surcharges on other credit union members" so "bank at a credit union not at a bank," suggested Ed Mierzwinski, U.S. PIRG's
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consumer programs director, on a blog.
"USA Today did a nice story on the problem and now everyone's finding out about the 50% fee increase," wrote Mierzwinski. BofA disclosed its noncustomer increase in July with the issue getting highlighted on national wire services last week.
"When a noncustomer uses a BofA machine, it now costs him or her $5.50 or so, since their own bank also charges them a foreign ATM fee of $2-$2.50, which it shares with the ATM owner," said PIRG in explaining double-dipping.
Mierzwinski urged the public "to plan your trips so you have enough cash so you don't need to stick your card into one of Bank of America's or some other big bank's double-dipping ATMs."
BofA had announced July 31 its plans to increase the fee on in-branch machines from $2 to $3 in most U.S. markets. The fee change was being phased in across the U.S. but would not apply to devices in malls, airports and convenience stores. It remains to be seen how quickly other banks would start increasing fees as well.
Meanwhile, CUNA's President/CEO Dan Mica claimed again the public has a new reason to join a credit union "and ditch those rising bank fees."
Mica pointed to columns by MSN Money writer Liz Pulliam Weston who July 16 advocated a switch from banks to CUs as a money-saver.
"In the column," said Mica, "she pointed out how credit unions offer nearly across-the-board lower or no fees at all. Today there are 25,000 surcharge-free ATMs from credit unions across North America available to consumers–and more than 2,000 shared branch locations."
Consumers "should consider Ms. Weston's advice" and drop their bank for a CU, said Mica.
Also, Florida-based Credit Union 24, which serves CUs, accused BofA of pursuing a strategy "to extract as much as they can from competitors that use" the bank's ATMs.
"One of the reasons Credit Union 24 was founded 25 years ago was to help combat these kinds of activities through cooperative ownership," said a CU 24 statement. "Credit Union 24′s shareholders are the network-participating credit unions themselves so pricing and policy decisions are always made in the best interests of the credit union and, ultimately, the individual credit union member."
When BofA "charges three bucks a pop," the biggest beneficiaries are the bank's stockholders, the Tallahassee firm concluded.
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