Nominal fees targeted at the demographics who will feel them most simply don’t work. Bank of America thoroughly illustrated this concept with the short-lived monthly fee on their debit cards, resulting in a plethora of negative press and a number of former clients transferring assets to credit unions. So why did Sallie Mae think applying a $50 fee to unemployed borrowers would work any differently? Following BAC’s footsteps and a 100,000 name strong petition, Sallie Mae restructured the fee and now applies the money toward repayment of the loan. Damage being done however, several people chose to speak out on the lender’s Facebook page. Comments were deleted minutes later. The comments can be seen here: Sallie Mae Censors Social Media.
