http://news.yahoo.com/fed-consumers-planning-bank-transfer-day-185804982.html


NEW YORK (AP) — It's moving day for bank customers.

A grassroots movement that sprang to life last month is urging bank customers to close their accounts in favor of credit unions by Saturday.

The spirit behind "Bank Transfer Day" caught fire with the Occupy Wall Street protests around the country and had more than 79,000 supporters on its Facebook page as of Friday. The movement has already helped beat back Bank of America's plan to start charging a $5 debit card fee.

It's not clear to what extent the banking industry's about-face on debit card fees will extinguish the anger driving the movement. But many supporters say their actions are about far more than any single complaint.

"It's too little, too late," said Kristen Christian, the 27-year-old Los Angeles small business owner who started "Bank Transfer Day." She already opened accounts at two credit unions in preparation for cutting ties with Bank of America this weekend.

"Consumers are waking up and seeing that they have options," she said.

Even with its public support, however, it's not likely that any account closings that take place on Saturday will make a big dent with industry titans such as Chase, which is the largest bank in the country with some 26.5 million checking accounts.

But the call to action shows just how incensed consumers were at the prospect of a debit card fee at a time of so much economic uncertainty. Even those who were appeased by the industry's reversal may have tapped into a new sense of empowerment.

That's the case for Dan Blakemore, a Bank of America customer for the past 10 years. He said he no longer plans to close his checking account now that the debit fee has been scrapped. But he'll be on the lookout for any other changes that might hit his wallet.

"I'm pretty confident they're going to find some way to get that extra money," said Blakemore, a 28-year-old who works for a nonprofit fundraiser in New York City. "I'll just have to see if it offends my sensibility enough to close the account."

Bank of America Corp., Citigroup Inc., JPMorgan Chase & Co. and Wells Fargo & Co. are keeping mum on whether they've seen an uptick in account closures in recent weeks. But credit unions and small community banks have been basking in the spotlight and issuing press releases highlighting what they say are superior interest rates and more intimate service, along with tips on how consumers can transfer accounts. They haven't been shy about the surge in new business they're enjoying either.

Navy Federal Credit Union, the largest credit union in the country, says new account openings in September and October were up 38 percent from a year ago. National Capital Bank, a two-branch community bank in Washington, D.C., says the vast majority of its new account openings in recent weeks have been by fed up Bank of America customers.

"The debit fee was definitely a driver," said Noah Wilcox, president of Grand Rapids State Bank in Minnesota, which is also enjoying a lift in account openings.

Because credit unions and community banks vary so greatly in size, however, it's hard to gauge the total scope of the defections they're reporting. For example, the Lower East Side People's Federal Credit Union in New York City says it's enjoying more than 55 new account openings a week. That's a big jump from its average of about 10 new accounts per week, but insignificant when weighed against the portfolios of the nation's largest banks.

Big banks have also learned that customer grumblings don't always translate into action. That's particularly true for those who have multiple accounts, direct deposit and automatic bill pay; many decide that switching just isn't worth the hassle.

"People will do a lot of complaining before they actually uproot and move," notes Mark Schwanhausser, a banking analyst with Javelin Strategy & Research.

The recent firestorm over debit card fees was "in a class of its own" because customers saw it as a charge for accessing their own money, he said.

The timing of Bank of America's fee announcement was unfortunate on multiple levels as well. In addition to the anxiety many are feeling amid high unemployment and stagnant wages, the news broke just as the Occupy Wall Street protests were capturing the national spotlight.

And big banks have been a key target for Occupy Wall Street, which has tapped into the lingering resentment many harbor over the role of banks in the financial meltdown of 2008.

Last month, two dozen Occupy Wall Street protestors were arrested when they entered a Citibank branch in New York City and refused to leave. Protestors have also banged drums and demonstrated outside bank branches in other cities; PNC Bank twice closed branches in downtown Pittsburgh last week after protestors entered.

But those are the extremes. Schwanhausser of Javelin said many customers will likely be placated by the industry's white flag on debit card fees.

"People are people going to look at that Nov. 5 date and say 'We made our point'," Schwanhausser said

The banking industry may feel the same way; representatives for Bank of America, Chase, Citi and Wells Fargo indicate they haven't done anything to prepare branch employees for a surge in account closings this weekend. Then again, many of the closures may have already taken place.

Molly Katchpole, a 22-year-old nanny in Washington, D.C., who started an online petition urging Bank of America to drop its debit card fee, says the bank's about-face won't win her back.

"The damage is done," said Katchpole, who has since joined a credit union in Washington, D.C.

..Power To The People..

650,000 Americans Switched to Credit Unions Last Month
By Martha C. White | November 4, 2011 |

Read more:
http://moneyland.time.com/2011/11/04/650000-americans-switched-to-credit-unions-last-month/#ixzz1cptzCmCC

According to a survey conducted by the trade association that represents credit unions, fed-up customers of big banks aren’t waiting until this Saturday’s “Bank Transfer Day” to cash out and take their banking business somewhere else. The Credit Union National Association says an estimated 650,000 Americans have opened new accounts at credit unions since Sept. 29, the day Bank of America announced its wildly unpopular debit card fee. By way of comparison, credit unions only had 600,000 new customers open accounts in all of 2010.

This is one of the clearest signs yet of how strongly bank customers feel about the proliferation of fees large institutions have started attaching to checking accounts. CUNA says that in addition to the 650,000 new customers, an aggregate $4.5 billion has been added to credit union savings accounts in that same time frame. More than 80% of the 5,000 member organizations surveyed said they’ve added members since the end of September.

CUNA president and CEO Bill Cheney said in a statement that this increase is most pronounced at the nation’s largest credit unions, although institutions of all sizes are increasing advertising and marketing campaigns to try and take advantage of the strong anti-bank sentiment sweeping the nation. Many are extending their hours or adding staff in preparation for this Saturday’s “Bank Transfer Day.”

It remains to be seen if customers will keep defecting from the “too big to fail” banks. Bank of America killed its much-derided debit fee earlier this week, and Wells Fargo and Chase both announced they were scrapping tests of debit fees. Will that be enough to stop the wave of disgruntled customers pulling up stakes and leaving their banks? Even though the debit fees are gone, there are plenty of other reasons consumers might want to leave big banks, not the least of which is the prospect that those fees could pop up somewhere else in the future — and it might not be as transparent as a $5 charge for using your debit card, says one analyst.

“My guess is we’re going to see more stealth-like fees,” says Dennis Moroney, research director for bank cards at TowerGroup, a financial services consulting firm. “It could be stuff that consumers may not notice, or something small that they don’t react to.” In other words, while a $60 annual fee to use a debit card was enough to prompt an outcry, if banks charge a buck or two for paper statements, customers might not object — or even notice.



Read more:
http://moneyland.time.com/2011/11/04/650000-americans-switched-to-credit-unions-last-month/#ixzz1cptTeRnA

I love my bank. Small town, know you by name, even recognize you voice over the phone. My bank will do small loans, and I only get charged a $6.00 monthly fee, no debit fees, or any of that crap!

Right on!

Good for them!

I like my local bank. I don't pay anything for checking except when I buy checks.

Citi bank keeps sending me preapproved credit card applications but I have had those in the past and they are horrible.