BofA in U-turn over debit fees

BANK of America has scrapped plans to charge a $5 per month debit fee, handing a victory to consumers and protesters angry with big banks.

The second-biggest US bank said yesterday that the move was in response to customer feedback and competition. BofA was under pressure to make the change as rivals backtracked from plans to charge customers for using their debit cards.

Last week JP Morgan Chase and Wells Fargo cancelled test schemes.