How to know if your bank will charge debit card fees - KAIT Jonesboro, AR - Region 8 News, weather, sports

How to know if your bank will charge debit card fees

JONESBORO, AR (KAIT) - Financial reform legislation enacted by Congress last year limits how financial institutions can make money. 

JONESBORO, AR (KAIT) - Financial reform legislation enacted by Congress last year limits how financial institutions can make money. 

Now, banks have come up with new ways to make up for the potential loss of revenue -- by cashing in on consumers.  

Nearly two years after the economic bailout of 2008, Congress passed the Dodd-Frank Wall Street Reform and Consumer Protection Act. The Durbin amendment contained in the law regulated banks with assets of $10 billion or more.

"It made a differential between large banks and small banks as far as the interchange fee that was paid on debit card transactions," said Liberty Bank of Arkansas president John Freeman.

Financial institutions like Bank of America that were regulated under Dodd-Frank will start charging consumers debit card fees to recover lost revenue.  

Financial institutions with assets less than $10 billion are not subject to the new law.  Freeman says Liberty Bank and many of the community banks in northeast Arkansas have assets totaling less than $10 billion.

The new fees leave consumers searching for alternatives, such as putting money into a credit union.  Northeast Arkansas Credit Union President Steve Purtee said credit union services are comparable to banks. "If you do a comparison of the consumer products and services that a bank would offer they would be very consistent with those products and services that we offer as a credit union."   

Tips to Avoid Bank Fees

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