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High Bank Fees Causing Customer Exodus

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  • Description

    FBN's Liz MacDonald on customers switching banks over higher fees.

  • Duration 2:34
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This transcript is automatically generated

But -- again that with this -- business alert new government data just released shows that 2011.

Was the most profitable year for the banking industry.

Since 2006.

The FDIC says that bank earnings were 23%.

Higher.

And the final quarter of 2011.

Vs 201063%.

Of banks.

Had improved earnings and 31 FDIC banks were dropped off their problem less that is down 11%.

Year over year or not the same time however banks are experience and a huge backlash over fees import service and parts -- -- of customers going elsewhere with their business.

And of course their money she's chair Elizabeth without -- investigating the story she joins me not major earnings here major exodus -- what is yeah that's.

Right this is a survey done by JD power to respect the research firm.

A 5100.

Bank customers nationwide a two dozen banks.

They're finding one out of ten are fleeing bank that there's an exodus out of -- student fees that's a reason cited also a third -- citing.

Obviously a poor service and the like and they're saying Bank of America Citigroup and Wells Fargo.

Are seeing the largest exodus of depositors over bank fees you know lives in this would make sense we've had a lot of analysts -- with the entire series on the show last week about regional banks.

So if these customers are leaving the major names.

Than where they gala -- they going to the smaller banks old are they giving something completely up with the money they're going to the smaller banks and their their credit card you credit unions rather because of the lower fees and a place of insurer what's really interesting -- we got in touch with Q.

Research and -- gave us data as for the reason why they they're fleeing and it is over these fees and that plethora of fees are pretty.

Pretty extensive you're gonna see not just the fact that these some -- are going up.

There -- the banks are now charging for statement copies for a check clearing things like lack of account use or -- get a going under minimum balance.

Internet transfers -- -- deposit a large amount of points -- gonna get hit with a -- now the banks are coming back to -- Citigroup by the way decline did not return calls for comment.

And Bank of America that didn't return calls kind of -- directing us to the American Bankers Association still waiting on a kind of from that.

But when we talk to the banks in the past and reading their statement they do site.

Bank regulations -- Durbin amendment.

-- -- -- As behind the reason for why these these are going up and all of this is going to be implemented later on this year you're -- -- -- all over -- with a little -- great story to thank you very much a lot to.

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