You’ve got to hand it to the bankers. (Actually, we pretty much already have.) They blow themselves and the economy up while paying themselves grotesquely large salaries. Then, working with government officials, they figure out multiple ways to get taxpayers and customers to fund their recapitalization. […] And how does the industry that has received so much largesse from taxpayers repay the public? By jacking up fees for basic services. According to Bankrate.com, the average surcharge for using a money machine rose from $1.78 in 2007 to $1.98 in 2008. It’s probably higher now. Last week, when I stopped payment on a check, I was astonished to find the charge was $32—about what it costs to sponsor a child for a month through Save the Children. Meanwhile, consumer complaints about being hit with massive and repeated overdraft fees have led to threats of congressional action.
The reality is that banks feel they have no other choice. Newsweek’s Steve Tuttle recently argued that the outrage over overdraft fees is overdone because people incur them only when they spend money they don’t have. Of course, banks are in the business of enabling just that sort of activity. They lend money to businesses and consumers to spend on stuff—cars, factories, houses—for which they can’t pay cash. The problem for the banks is that the demand for that core business of spending money you don’t have is way down.
Could have stopped right there!
“You’ve got to hand it to the bankers. (Actually, we pretty much already have.) They blow themselves”
100% reserve is the only way to fix this.
Not a “maximum of 3%” as stipulated in the “stimu-pork” law.
One bank would charge you $33 every three days if you overdrew
Hey Liberty Lover – 100% reserve would mean that the bank would not be able to lend! If they have to keep 100% of their deposits on hand, where does the lending come from???
3% is silly, especially when fractional banking is involved. 10% to 15% is probably more reasonable. Of course, the REAL solution is for creditable reviews of a banks lending, and publications of these numbers. Then people can decide if the bank is safe or not….
Why doesn’t the “free market” work here? That may be a deeper question than I intended here, just rereading it.
Banks without such fees (Community and Credit Unions) are available everywhere. If you can’t “pay attention” why not get a different bank unless the customers really “don’t care” and if they don’t care, where is the harm?
I think this story is very much more important than a quick read would suggest, but not for the topic presented.
I never get late fees, because I care about wasting money that way. I’m with Wells Fargo and thinking of moving to a Credit Union just incase I forget to check my account bi-weekly. Plus, I’m tired of their helpful personal banker telling me they can help me invest my portfolio.
Wells Fargo and BofA have become criminal enterprises.
I know a manager of a local Wells Fargo branch, and one time I asked about how much his branch makes off overdraft fees.
He said “better than a couple million, and it’s all pure profit!”
Now mind you, this is one small branch. Wells Fargo has 6,650 branches. An easy 13 BILLION dollars plus, risk free.
I’ve got to admit I’m spoiled. I pay $120/year for my credit card, mainly for various types of insurance (e.g. rental car, extended medical insurance while traveling, purchase insurance, etc) so it pays for itself quite quickly. I pay low rates on my mortgage and credit line and zero fees except brokerage fees on trading. The only add-on fees I do pay are for withdrawals from ATM’s from other banks.
I meet with a financial advisor every quarter who I’ve known for years (in the evening when convenient) to review investments and strategy. He also takes care of occasional in-person items like certified cheques. I do most of my banking on-line and get emails regularly on changes (investment reports, stock limit sales, etc).
I honestly have a terrific banking experience and am very happy. I’ve been with the bank for years and wouldn’t think of changing. Of course, I’m Canadian and use RBC.
For reading negative articles about banks we have decided that you have exhibited antisocial behavior, as per paragraph 1,953 in your checking account contract, and your account has been charged $35. Have a nice day 🙂
Unemployment payments are made thru a Bank One Debit Card. Unemployment amounts to $493.00 a week here.
You can only withdraw in groups of $20, and any account under $5000.00 pays a $9.00 fee monthly for the service.
Even Unemployed have to PAY to the BANK.
A fool and his money are soon parted.
If you are not shopping around for a bank that can give you interest on your balance, plus no fees, then you are the fool.
Sometimes you have to change your banking habits. If you are out of town, don’t use an ATM for cash, buy something small at a store with your bank debit card and get cash from them without a fee.
I have accounts with two regional banks. The one in Texas (Firstbank Southwest) is wonderful. They do a three day float for deposits. My other bank, will not report a withdraw for 5 days, then post date it back to the original date it was presented to the drawing bank. That means I have 5 days of receipts from the bank showing account balances without that withdrawal but when they write the statement, the withdrawal comes first the deposits take 5 days to post.
Come the revolution first bankers then laywers
What the big banks do is criminal. The worst..is the bullsh*t they do with CheX, the bank rating company. If you bounce too many checks (floating term “too many”, depends on their mood, evidently) then the system bars you from getting a checking account at another bank. BofA has made it an art to bounce as many checks as possible, so one set of checks coming in before the “delayed deposit” can set you back hundreds of dollars. BofA will put you on CheX at the drop of a hat. But, they will always allow you to keep your account with them, or re-open an account with them. Bank Slavery!
Meanwhile, many credit unions will NOT take anyone with a ding on CheX, now. They’ve been sold that nonsensical bill of goods.
I’m fed up with big banking. The American Bankers Association are a bunch of jerks (www.aba.com). The big O’s appointee’s are the same people who pushed for deregulation: Larry Summers and Timothy Geithner. Some of Obama’s largest campaign contributions came from financial institutions. Look at the number of politicians in office who openly represent bank interests, and only give lip service to claims of reform.
We have greed, STILL, running rampant, and the man who promised HOPE, must have been promising that to the banking executives.
To the wall!
It’s NOT just a case of people spending more than they have. In one case of mine I made a substantial deposit from a trust fund. When I asked when the funds would be available I was told “five business days”. After seven full business days I made an online transfer to another institution. A day later I received a snail mail telling me the funds wouldn’t be available for another week(?!). And then they charged me a $35 overdraft! I got the $35 back after I went down and raised hell, but why they can hit me with a fee within a millisecond of a transaction, but can’t (won’t) post a deposit for a week or better?
Well the problem we had before the recession was nobody was saving. Now the problem is nobody is saving? So in the end money goes into the banks and goes right back out. So they have no choice but to add fee’s. Don’t assume I am on their side. I think just by looking at some banks and also their executive pay that they don’t help themselves. In fact their get rich quick by loaning out to questionable partners is one reason they are failing. The only solution is tighter lending and smarter management.
I guess they would rather just have their customers pay for their mistakes. Its much easier on them.
The last and final Great Rape of the American people, her lands and her sovereignty is underway.
If you do not wake up and put a stop to it NOW, you have ZERO right to complain and might as well go back to watching the instrument of your ignorance and death, the TV.
You will have wasted your life and will not get a chance to rectify it again.
-s
We live in a Mirror Image reality of the truth.
Learn to see through this or forever be a slave to your ignorance.
It still is fun to drop by and see what ignorance prevails. Uh, guys, none of this is struck in stone.
Call your bank and tell them you don’t want automatic overdraft protection. Then, they remove it. Gee, that’s really arduous.
Whingers need a Nanny State.
If your bank changed overdraft fees, procedures, late fees, ATM charges – you received a piece of paper in the mail with the details. You could have opted out.
If you read it.
You could have canceled the account. I did so when a credit card’s rates were changed for what I felt was no good reason – and on a zero balance at that.
I read the notice.
If you didn’t notice the changes – guess whose fracking fault that is?
Bankers should to be reminded of what happened to them in 1873.
That’s good, moss. Now go to Wells Fargo and request overdraft protection be canceled.
They won’t do it. No joke.
I only use banks and charge cards that pay ME for using them and don’t charge for services.
Just shows the need for more Credit Unions in this country. My 1st savings & checking accounts were at a Credit Union. Better hours, rates & better service than any bank. People should Google for local CU’s you might be surprised that you have one to join.
I tried Wachovia 2 years ago because it was down the street & the credit union was a 20-30 min drive away. It was $20 to open a checking account & I ordered a bank card. They told me it would be 3-4 days till the check card came. After 2 weeks I went in to ask where my card was I was told that since I only had $20 in the account that I didn’t need a check card, how nice of them decide that for me. After a 10 min fight to get them to give me my $20 back I showed them the $900 I had been planning on depositing. It went right back to my Credit Union that I’m still a member of & have been with for 18 years. Wachovia was my 1st time trying a bank & last.
Put your money in a credit union, problem solved.
#4, Hey Liberty Lover – 100% reserve would mean that the bank would not be able to lend!
EXACTLY!!!
It seems in general that the more customers a bank has, the worse it treats them.
In several decades of having bank accounts, I have _never_once_ paid an ATM fee. I know where my bank’s ATMs are and don’t use any others.
It also helps that I don’t live in a major Eastern Seaboard metropolis or in California. The cost of living is a lot lower in “fly-over country.”
I used to have automatic debits for recurring expenses debit the same day as my ach deposit. One day they stop recording the deposit first (even though it was sent at midnight) in favor of the debits. They started that little BofA trick, too, where the big checks go first, to maximize the fees.
I quit them for another CU, and first thing I did was cancel overdraft protection. The reinstate it almost immediately now, every time they update their tos. They also started holding manual deposits for a week, including gov’t. checks.
The free market does work. Dump the bank off
your back and move to a credit union.
For 40 years I have paid no fees for anything
after I left BofA
Overdraft is one thing, how about 29% interest rates on credit cards. How is that even LEGAL? Because congress is in the pockets of the financial industry,(along with several others). Shameful.
Free market, my butt. Credit unions pay their bosses too, and both of mine pull almost as many stunts as the banks.