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Monday, January 24, 2011 - 9:56 PM
I received the below information by email today.
A message from the President of Royal Banks of Missouri.
On July 21, 2010, the Congress passed and the President signed into law The Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank). One of the provisions of Dodd-Frank is that the Federal Deposit Insurance Corporation was required to review debit card transactions and the fees being assessed by banks on the merchants accepting the cards.
Recently, the FDIC released their initial thoughts on reducing debit card fees to 7-12 cents per transaction. While this may seem like a good thing for consumers, it is not a good thing for you as a Majestic Account owner. Royal Banks of Missouri (Bank) used the debit card fee income to help offset the high interest rate we have been able to pay you on your Majestic account. Given that our income will be almost totally eliminated and, it is quite possible that the Bank will lose money on each debit card transaction, a fundamental change to all of our Majestic Accounts will occur when the current proposal becomes law.
Currently, the Bank is studying numerous ways to help offset the elimination of the debit card income. While we have not finalized any plan, I am compelled to inform you that there will be significant changes in the structure and interest rate paid on all existing Majestic Accounts.
I anticipate that we will be finalizing our changes sometime in March/April. The Bank will provide you with at least 30 days notice on any structural changes and one weeks notice on any interest rate change.
In advance, I apologize for the inconvenience this will cause you. If you have any questions, or need anything further, please feel free to contact me by e-mail at badens@royalbanksnet.com or I can be reached by telephone at 314-212-1655.
Sincerely,
Stephen A. Baden
President & CEO
Royal Bank Of Missouri
Royal Banks of Missouri (0 stars) - DetailsI received the below information by email today.
A message from the President of Royal Banks of Missouri.
On July 21, 2010, the Congress passed and the President signed into law The Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank). One of the provisions of Dodd-Frank is that the Federal Deposit Insurance Corporation was required to review debit card transactions and the fees being assessed by banks on the merchants accepting the cards.
Recently, the FDIC released their initial thoughts on reducing debit card fees to 7-12 cents per transaction. While this may seem like a good thing for consumers, it is not a good thing for you as a Majestic Account owner. Royal Banks of Missouri (Bank) used the debit card fee income to help offset the high interest rate we have been able to pay you on your Majestic account. Given that our income will be almost totally eliminated and, it is quite possible that the Bank will lose money on each debit card transaction, a fundamental change to all of our Majestic Accounts will occur when the current proposal becomes law.
Currently, the Bank is studying numerous ways to help offset the elimination of the debit card income. While we have not finalized any plan, I am compelled to inform you that there will be significant changes in the structure and interest rate paid on all existing Majestic Accounts.
I anticipate that we will be finalizing our changes sometime in March/April. The Bank will provide you with at least 30 days notice on any structural changes and one weeks notice on any interest rate change.
In advance, I apologize for the inconvenience this will cause you. If you have any questions, or need anything further, please feel free to contact me by e-mail at badens@royalbanksnet.com or I can be reached by telephone at 314-212-1655.
Sincerely,
Stephen A. Baden
President & CEO
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