Greg Parker, president of Parker Cos., Savannah, Ga., has filed a lawsuit to block the state’s plan to end the way he advertises his PumpPal discount gasoline program, reported the Savannah Morning News. The suit asked Chatham County Superior Court Judge Louisa Abbot to temporarily halt new rules that would ban display of reduced debit-card gasoline prices.
“Whenever there has been frustration or negative publicity with other institutions, the credit union is where people turn,” Williams said. She added that the credit union does not plan to implement any fees on their checking accounts.
Protestors are calling the event “Bank Transfer Day” and are encouraging people nationwide to participate November 5.
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The new $5 monthly charge has become a focal point for anger and frustration about the flailing economy and Washingtons attempts to help the nation recover from the financial crisis.
The Fed had been established in 1913 in large measure to end the then widespread practice of banks’ charging a similar “interchange” fee for the use of paper checks. Those check interchange fees were slowing the growth of interstate commerce, and the Fed quickly prohibited them. The interchange fees that banks now charge stores for debit transactions are economically and functionally identical to the check interchange fees prohibited by the Fed almost a century ago.
For decades, Bank of America, the founding owner and member of Visa originally called BankAmericard and all of the Visa and MasterCard banks, including Chase, hid the identity of their debit cards from stores by designing them to look and function like their signature authorized credit cards and by charging stores the same price for debit and credit transactions. Banks did this despite the fact that purchases made with a debit card didn’t involve a loan from the bank, posed very little fraud risk and were extravagantly profitable to banks because they eliminated the costs of processing and clearing checks.
For its part, BofA has estimated that these new rules will cost it about $2 billion annually in lost revenue. Industrywide, these processing fees brought in $19 billion for banks in 2009, according to the Nilson Report, which tracks card payments.