Little bank benefits as big ones stumble

s Bank of America and Citibank try to soothe customers fed up with the recent announcement of new banking fees, there’s one group happy to sit back and capitalize on the situation.

Community banks and credit unions say the big-bank fees led to an increased number of inquiring customers at their branches last week, and executives believe the growth will continue to pick up speed over the coming months.

Bank of America announced plans on Sept. 29 to institute a $5 monthly fee, starting next year, for customers who make purchases with their debit cards, and Citibank said Thursday it will raise minimum account balances for its customers, who will be faced with a monthly fee if they fail to meet the new requirements.

Both banks have highlighted options for customers to avoid such fees, but many consumers aren’t buying it.

“They keep shooting themselves in the foot,” said Dick Lavoie, vice president of marketing at Nashua’s Triangle Credit Union. “They keep implementing restrictions on their accounts, so people are finally getting fed up and moving.

“And where are they moving to? They’re coming to credit unions.”

Triangle Credit Union has grown about 7.5 percent in 2011, Lavoie said, and he expects those numbers to rise further after Bank of America’s announcement.

Lavoie even called Bank of America an “ally” because it continues to alienate customers with fees, and those people end up at Triangle or other local banks.

Lavoie said he has witnessed “an awful lot of changes” in nearly 40 years of experience with credit unions, but that the new fee from Bank of America is a blunder of rare proportions.

“Now is not the time to come up with a new fee, in this economy,” he said. “As a personal consumer, I can’t see the justification in it.”

Bank of America spokeswoman Betty Riess said the new fee allows the bank to make ends meet.

“This new fee allows us to continue to offer the service and convenience customers have come to expect from Bank of America,” she said. “We’re making sure customers understand the value and convenience of debit cards and the choices they have to avoid the fee.”

Riess said the fee is “clear and transparent.” It will start in early 2012, and all affected customers will be notified in writing at least 30 days in advance.

“It is a result of the cost of doing business,” said Karen LaPlume, vice president of marketing at Granite State Credit Union. “They’re paying for it on one end, so they have to charge the customer on the other end.”

LaPlume said Granite State Credit Union has seen a “slight influx” in people asking about their checking accounts and fees in New Hampshire over the last week.

“In light of Bank of America being in the news, we are finding that more and more people are coming to us,” she said.

Large regional and national banks are as quick as local banks or credit unions to try to capitalize on the debate.

A TD Bank representative said the bank has “no plans to charge” its customers for the use of debit cards.

“We’re confident in the products we offer now and look forward to the opportunity to take market share,” said Rebecca Acevedo, public relations manager at TD Bank, which is based in Canada.

Still, the organizations with the most to gain are community banks. With a growing presence in small towns and fewer restrictions on customer accounts, local banks believe they offer a viable alternative to large national banks.

Nashua Bank plans to “capitalize with advertising” and will begin a campaign for new customers today by offering a limited-time promotion of $5 to anyone who opens a new checking account, President G. Frank Teas said.