Debit card fees likely to increase in 2011

Debit card fees likely to increase in 2011 As a result of a renewed effort from lenders to recoup profits lost to new federal regulations, consumers looking to avoid credit card debt may find that debit is no longer a cost-effective payment option either, according to a report from the New York Daily News. Major lenders are expected to roll out or reintroduce a number of fees to debit accounts.

One of these expected changes is the use of the long-absent minimum account balance, in which consumers can be hit with hefty charges for not maintaining certain amounts in their checking accounts, the report said. Banks are likely introducing this in an effort to encourage consumers to take on more credit card debt instead.

In much the same way it recently limited fees for transactions involving credit card debt, the Federal Reserve Board recently announced it was considering caps for debit purchases as well.