Banks hemorrhaging angry customers, credit unions benefit

Bank of America's announcement that they would be dropping their notorious $5 per month debit card fees has come too late for many Americans who have already made the switch to credit unions. It's expected that many more dissatisfied customers from all of the nation's major banks will soon switch over to credit unions.

LOS ANGELES, CA (Catholic Online) - National nonprofit credit unions are reporting a substantial increase in new members and deposits as the Occupy Wall Street movement has gained mainstream public support. While many may distance themselves from the protesters and their occasional antics, many people agree with the anti-large bank sentiments expressed by the movement.

November 5 has already been declared by occupy Wall Street as "dump your bank day". It is unclear how many people will switch banks on the 5th. 

According to the most recent figures, credit unions have attracted some 650,000 new customers since September 29 when Bank of America made its announcement that it would be adding a $5 per month debit card fee. Credit unions are also saying that new customer deposits have grown to $4.5 billion. Those figures are according to a survey published Thursday a 5,000 credit unions done by the Credit Union National Association.

The appeal behind credit unions is that they are chartered as nonprofit entities owned by their members. They are regulated like banks, and deposits are insured by the FDIC up to $250,000. Statistics show there are almost 7,800 credit unions in the United States. There is no emphasis on large profits unlike major corporations. 

Large banks are having troubles keeping their customers loyal. A recent Harris Interactive poll showed that 17 percent of those using large banks are unlikely to stay where they're at and are considering switching to another bank. Conversely almost 90 percent of credit union clients intend to stay put compared to 60 percent of bank clients who are likely to stay with their current institution. 

For many customers, the announcement of a $5 fee on debit card use was the last straw. Big bank customers upset with Bank of America and other large banks that were testing similar fees are leading the drive to the credit unions.

Some experts believe that banks have grown complacent and have started to take their customers for granted because switching banks is a time-consuming and involved process. However, recent events have shown that if customers feel disrespected they will put forth the effort to find a better deal, especially in troubled economic times.

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