Backing off unpopular fee, banks perform a “Netflix”

Just like Netflix quickly backed off its unpopular plan to spin off its physical DVD operation into a separate business, pretty much every major bank that rolled out new fees for debit card users recently has backed off.

Banks like First Tennessee Bank and national companies like Bank of America, SunTrust Banks Inc., Regions Financial and others have all within the last few days dropped plans to implement unpopular new fees for debit card users.

First Tennessee confirmed Tuesday, Nov. 1, it will not begin the implementation of its new debit card fee program. The bank had decided beginning in late October to starting charging 4 cents for PIN transactions and 14 cents on signature transactions, up to a maximum monthly amount of $3.

Meanwhile, Bank of America said it’s dropping its planned $5 monthly fee for debit card users that sparked widespread criticism from customers.

Also, SunTrust said it will stop charging its $5 per month fee for debit card users. Regions is dropping its $4 per month fee, and other banks like Chase and Wells Fargo have backed off, as well.