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Boycotting Banks and Their Outrageous Behavior: Beyond Bank Credit, Loans And Financing
July 11, 2008
As though forced short term loans -- called, in a triumph of Orwellian Newspeak, overdraft protection or overdraft courtesy -- with associated fees that would make Larry the Loanshark cringe in disbelieving horror weren´t bad enough, the big names in banking have still more outrageous fees to pass on to often unsuspecting consumers as they scramble to cover their losses in the mortgage and lending debacle. It would be so nice if people would say enough is enough and start to boycott these institutions or at least use them as little as possible. After all, the banks are not the only game in town, not any more. There are options in between being at the mercy of the banks and that handy spot underneath your mattress.
If It Didn´t Cost So Much, It Would be Almost Funny
The bank uses consumer deposits for a variety of things, such as making loans. The interest and other monies garnered is part of how they profit. That´s fine, they are not expected to work for free. However, there is a point when legitimate earnings become excessive, even exploitive, and we have reached that point. With all their stunning losses in mortgage related financial dealings, the banks are scrambling to make up the money they lost.
So, basically the deal is this -- they used consumer money, lost big time doing so, and now are going to cover their losses by exploiting those same consumers. According to data from the Federal Deposit Insurance Corp., banks sucked $38.6 billion dollars in service charges out of their users in 2007, a figure that is on track to increase significantly during this year. For some banks, these fees are now providing as much as half of the money they are currently making.
Bank Of America , a financial institution that has had to write down billions in mortgage backed financial instrument losses and has seen stock value plummet due to their current loss level, is now treating using their bank card in a parking meter as a cash advance worthy of a $10 fee, according to a recent report at the Consumerist.com . Add that to the growing list of ridiculous fees imposed by banks today, including paying to stand in line and wait patiently until your turn arrives to speak to a bank teller.
In an article published by USA Today on October 4, 2005, the writer took a close look at what was then one of the newest bank fees. With a name that mockingly insults the intelligence, the so-called courtesy overdraft or overdraft protection pulls in huge amounts of money for banks by not denying transactions in which the funds are not there to cover them – all too often because of the bank´s very own balance updating or check clearing policies – and then charging a huge fee for the forced loan. This is an automatic "service" in many banks, one that consumers in numerous banks are not allowed to opt out of. As one who has been charged $30 for a nickel and $35 for 17 cents, this writer despises this fee most of all...
Source: http://www.americanchronicle.com |
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