OK folks In October of 2008 the federal government used quite a substantial amount of taxpayer money to bail out banks. I know there would be some argument that it is government money and not Taxpayers. Clear up this one before we even start. Any money held by the US government is funded by tax dollars. Folks in DC don’t work at the local AM/PM when they are not in congressional session. They are paid and disburse taxpayer money.
So anyway, In 2008 the federal government stepped in and passed The $700 billion dollar bank bailout bill. Preventing the “catastrophic” collapse of major banks throughout the country. (personally I’m thinking “bad idea”) After a series of mergers and reorganizations the banks more or less stabilized. And to show their gratitude to the American people, what did they do? They awarded themselves bonuses with money that didn’t belong to them.
With instructions from the government to ease restrictions on home modifications, banks in return foreclosed on properties, sometimes with quick filings with little or no reviews and many times without proper signatures of the parties involved. Thanks a lot.
Now leading the way is Bank of America. Starting at the beginning of the year, Bank of America will be charging a $5.00 a month fee to use your Debit Card in essence to get to your own money. Today’s society has come to enjoy the use and security of the debit card. We can buy almost anything using the debit card with the added security of not having to carry cash or checks. Bank of America, seeing an opening for more wallet padding,it now sees fit to add additional fees under the pretense of making up cash flow for new regulations put on them by the government.
Just like the bailout money used for bonuses, now banks see a way to make more money on regulations meant to ease the burden on the customers. Well, some people are doing a lot of yelling and screaming about the way banks are treating the customers. But all the yelling and screaming got you was $5.00 more out-of-pocket each month. Look people, during the bank collapse and subsequent bailouts there is one group of financial institutions that were not effected, did not sweat the shaky ground.
CREDIT UNIONS! Credit Unions are customer owned. The money held is that of the customer and just like FDIC protected from loss. But the difference is that Credit Unions are less affected by the under shaded dealings of banks. In most cases the credit unions offer the same services as banks (checking, savings, auto loans) and most times this is with lower interest rates on loans.
Stop crying about how the bank is screwing you and has been for 3 years…. do something that really hurts them, JUMP SHIP! But do it quickly, other banks are planning to follow B of A’s lead, and it’s not going to get better.
Have a great day America.