Banks and Their New "Fees" on the Poorest Americans

[Obama 2012 1,714]

gotta love the banks.....

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http://stompmud.com/2011/10/fees-galore-from-a-bank-near-you/

Hot topic as of late is Bank of America’s new charge for using Debit Cards. Another reach-in by the big banks who try to sucker you in and then find ways to take your money, and it’s not just Bank of America.

It’s actually a good thing that BOA decided to start charging $5 for using a debit card. Why? Quite simply; it’s an eye opener for many. So many people don’t realize the new found fees that banks have been trying to push in recent months. It’s just not Bank of America with their $5 fee. Chase and Well Fargo are pushing a $3 fee for use of their debit cards, Regions bank is starting a $4 debit card fee starting next month, and even SunTrust is going to have a $5 fee as well for use of their debit cards. Welcome to the new world of banking.

This new world of banking though only effects you if you require one of the bank’s lower standard checking account services. We can be real honest when we call these fees what they really are: A tax on the poor. Yes, it’s just another instance of big corporate banks trying to tax the poor, who their fees might have the biggest impact on. High-balance checking accounts (see: ones that aren’t a nuisance to the bank) don’t end up having the same $3, $4, or $5 fees associated with debit cards. This is nothing new necessarily in the way banks prioritize their accounts, but it should be an eye opener to some who may not of understood how things work in the past. It’s the big accounts that provide the highest yield for banks and why those accounts will always be the last to see any fees attached.

Let’s get one thing straight. Banks are in business to make money. They aren’t here to be our friend and they surely aren’t here to make sure that people possibly have the extra $5 a the end of the month to buy a loaf of bread and a package of bologna. Their one purpose is to keep their income flow steady and to make themselves and their investors money in any way they can. Unfortunately for many of us, that comes straight off of our backs. While this may not seem fair and may seem like the bank is out to get us, this is just their way of continuing their flow of income in light of recent regulations. That’s not to say that banks care, because let’s be honest here; they don’t. We think it’s absurd to add this burden onto every day people, but there again we make the same choice to patron them and we can just as easily walk away.

So what can you do to avoid the debit card fees that the big banks are placing upon us? There are a few options out there including; using a credit card, look into local credit unions and banks, go back to using cash, see if there are ways your bank might offer to avoid the fee, and go back to using checks. These are just a few ways to help fight back against the fees that your bank might charge.

While some of these forms might not be preferred like using a credit card for example, it might just be the best way to stick it to the bank by keeping your money to yourself. If you’re smart with a credit card and pay off your balance immediately (with your banks check) then you’ll have nothing to worry about. Even if you don’t qualify for a credit card then you can always start using cash once again as your primary purchase. While it may not be as convenient anymore to keep cash around, it just might be the right idea to keep from having to pay those fees. The best alternative might be to look into joining a credit union or applying at a local bank. Credit unions are usually community based and not usually there to turn a large profit, and local banks are usually trying to make a name for themselves. Both of those options should normally not have any fees associated with debit cards and credit unions usually only require you keep a minimum balance of at least $5 in a savings account.

We’re entering a new banking age and it’s one that is going to be interesting for all parties involved. Bank of America’s stock is suffering thanks to their announcement and people will soon be suffering the almost $40-$60 annually in fees. The bright spot here is that just like everything else out in a competitive world, someone will more than likely rise above and start advertising themselves as the bank that doesn’t change debit card fees. If the airline industry has Southwest Airlines for no baggage fees, there’s no reason the banking industry can’t have their own as well that would win the day with no debit card fees. The sooner people get loud and the harder they fight back, the sooner someone will be there to listen.

[mawilson 2,133]

people will soon be suffering the almost $40-$60 annually in fees.

Oh the suffering!

[Obama 2012 1,714]

Oh the suffering!

for someone working a minimum wage job, $60 is quite a bit... That's part of a monthly bus pass perhaps, or a trip the grocery store, etc...

[mawilson 2,133]

for someone working a minimum wage job, $60 is quite a bit... That's part of a monthly bus pass perhaps, or a trip the grocery store, etc...

We're talking 16 cents per day here.

[patient2010 93]

thanks for sharing!

[The_Dude 1,142]

I would understand the fees, if the banks were forced to keep ALL deposits on hand. But they don't, they lend it out, they invest it themselves, they earn profits, using your money. They don't even bother to give you a reach around anymore.

[Gary and Alla 3,694]

Banks are a business and they had established a source of income. Congress comes along and says "You can't do that anymore" and some brainless morons thinks the banks will just say "Oh, well, that $1 billion per year was fun while it lasted, I guess we will just tell our stockholders about it and they will be fine with it. Yeah, that's it"

No.

They will find another way to make the $1 billion per year with new fees and the businesses will pass those fees on to the customers, probably with a mark-up, for collection and we will pay MORE than we did before. Thank you Congress! You saved us again.

If we tax business, the same thing happens. Individuals pay the tax. Whether it is cutomers, employees or shareholders, individuals foot the bill...they have to.

FAIR TAX NOW!

[mawilson 2,133]

Banks are a business and they had established a source of income. Congress comes along and says "You can't do that anymore" and some brainless morons thinks the banks will just say "Oh, well, that $1 billion per year was fun while it lasted, I guess we will just tell our stockholders about it and they will be fine with it. Yeah, that's it"

No.

Yep - that about sums it up.

[Gary and Alla 3,694]

I would understand the fees, if the banks were forced to keep ALL deposits on hand. But they don't, they lend it out, they invest it themselves, they earn profits, using your money. They don't even bother to give you a reach around anymore.

And you have a choice to put your money somewhere else. OR use your own money to earn profits instead of giving it to the banks to earn profits. You give it to banks because it is insured, otherwise there is very little reason to keep it there, certainly not interest rates. Take a risk and invest it yourself.

I have never paid an overdraft fee. I HATE overdraft fees. I hate them so much I NEVER pay one because I am SURE never to overdraw my account. I do not need congress to protect me from overdraft fees, I do it myself perfectly well.

I pay NO ATM or debit card fees because my bank has none and neither does our credit union. If my bank tried to charge this fee I would go elsewhere today.

WE can do plenty to control the market for bank fees but instead whiners whine to congress to "save them"

But to expect banks that have had this income to suddenly stop having the income is beyond naive. Shop around, there are banks and credit unions that do not charge these fees, or offer ways to avoid them like a minimum balance. Minimum balances are usually a good deal since there is NO WAY you could possibly earn in interest what you save in fees. Check it out!

Edited October 3, 2011 by Gary and Alla

[MyLittlePony 340]

BOA and wellsfargo suck are the worst in fees I will never have account on them again.

[Gary and Alla 3,694]

Poor people are usually best served by credit unions and they rarely charge these fees. we have here "Opportunities Credit Union" that specializs in people of low income and poor credit history. If we have one in Burlington, there is no doubt one around any sizable town.

Our Credit union, which all of us have accounts at and Alla and I have joint accounts requires only $50 to open an account and gives you a $500 limit credit card upon opening the account. After 6 months they increase it to $1000 and after that you can request further increases.

[Glyn and Kathy 288]

My bank has a "green checking" account. It costs 4.99 a month, but the fee is waved if you have money automatically moved from checking to savings every month. Works well for me and I don't think about it at all. As for debit card fees? My bank does the opposite. Every time I use my debit card, I earn .10 up to 10.00 a month. So far, I have earn 190.00 from my bank.

Just a matter of shopping around. Unfortunately though, if you have poor credit, its hard to shop for a bank, as many of them won't accept you.

[Nina~ 431]

My bank has a "green checking" account. It costs 4.99 a month, but the fee is waved if you have money automatically moved from checking to savings every month. Works well for me and I don't think about it at all. As for debit card fees? My bank does the opposite. Every time I use my debit card, I earn .10 up to 10.00 a month. So far, I have earn 190.00 from my bank.

Just a matter of shopping around. Unfortunately though, if you have poor credit, its hard to shop for a bank, as many of them won't accept you.

Thats weird. They have never checked my credit for any of the bank accounts I have opened so far. They only check your credit when you apply for a loan or a credit card.

[Danno 1,228]

If my bank started charging me fees like this I would relocate to another.

Even though the 5 bucks a month would never be missed, what's to limit it to 5 in the future? And what about people it would hurt?

I dumped a bank years ago in which I had a pretty hefty sum, for a stupid Drive-through policy.

I believe Charlotte is or was the headquarters for BOA and everyone complains about them.

The best way to prevent these fees from spreading is to leave banks who implement them and tell the bank Manager on the way out the door.

[Obama 2012 1,714]

Thats weird. They have never checked my credit for any of the bank accounts I have opened so far. They only check your credit when you apply for a loan or a credit card.

Your credit was checked when you opened your bank account and you just didn't know it.

There's a 4th and 5th credit bureau that people don't generally know about that deal directly with banks in regards to checking accounts. One is called "ChexSystems" and the other is "Telecheck."

If you've ever worked in any type of retail store you might have seen their cards years ago that are given out to people if a store denies their check, etc. for some reason.

Where a regular creditor reports to Experian, Transunion, and Equifax, banks report to these two. It's the one outlet that many people don't know to check if they've ever been victims of identity theft and getting items removed from ChexSystems is a real pain in the #######. Even having something as small as a $100 mark against on you ChexSystems can get you denied at almost any bank and many credit unions as well.

Since they are technicaly credit bureaus though, you can request a FREE credit report from them just like any of the major 3.

Edited October 4, 2011 by DJ Kyo