I got a call from my bank today because my checking account was overdrawn, but not to worry, they said, because I have overdraft protection and no checks would bounce. They transferred the minimum of $25.00 from my savings into my checking to cover a small check, and the fee is $5.00 for the transfer. $5.00. Thank you bank, for doing this because otherwise, I would have had a bounced check which would have cost me $34.00, and another fee at the other end, and on and on. So, I should be thankful, right? Well I'm not. What an ingrate I am. Why? Well, the five bucks I paid for the transfer amounts to an interest rate of 20%, or an annual interest rate of about 7200 per cent. Remember, I only had the money for one day-technically. What's more shocking is that it was my money- it came from my savings account! They're charging me to transfer the money. Probably a three second task and one button push on a computer if its not already automated. What a rip-off! Out of principal, I would have felt better if they bounced the check. I mean, let 'em work for their money! I been with this bank for a long time. What happened to the days when they paid the check, and when I went in next time, I covered it. I 'm not asking them to cover a $10,000 check for a down payment on a car, I'm asking for one day on $28.00. Well, that's the new customer service for you, "We'll be glad to help you" say the banks, "for a fee". The only thing they're helping me do is empty my wallet.
Now, we've all been reading that the banks are having a terrible time with this sub-prime lending thing. They're are laying off staff, and some have to bailed out with government cash. We don't need another depression in this country, especially in this day and and age. You'll have mount a machine gun on your house to protect yourself if that happens. But, with all the fees the banks charge, why the hell are they having problems. What about Mr. and Mrs. American citizen? What if they need help? Is the government going to bail them out? Oh wait, we did get our stimulus checks. Kind of a small bailout for the common folk. They paid off bills they got from the bank with it! I mean what the frig was that all about?
My 87 year old mother lived during the great depression, and says,"Screw the banks". If things go bad they're going to keep the money. They did it before. Keep your money with you. In your house. And that's exactly what she does. Maybe she has a point. The banks pay about 2% interest on savings, so unless you have a large amount, why not keep it. She keeps just enough in small free checking just to pay a couple bills. Sure, the house can burn down, or you can get robbed, but, my 87 year old mother would probably beat someone to death with her wooden spoon if you try and rob her. What's the point of paying all those fees if you don't have to. What's the point in giving it to a bank if they can't even manage themselves?
Now, I know we're not all an 87 year old grandmother, and most of us need a bank to cash our payroll checks, and pay bills, but something has got to change. The banks need to service they're customers, not fee them to death. Yes, the banks need to make money to operate, but not to the point of being loan sharks. I think my Uncle Vito would charge me less in fees. He'd break my legs if i didn't pay, but I'd have more money. The banks will tell you they have to protect themselves from bad check writers, and people that don't pay their loans, and unlike Vito they can't break a leg. They just wreck your FICO score. That's worse than the damn broken leg. I know girls that won't even date a guy if his score falls below 700. More on this in a future post. Now,I can't blame the banks for being careful, but a majority of customers just want good service. No seven day holds on checks, no fees because you look bad on the surveillance cameras. No late fees on late fees and no, and I love this one, "your interest rate on your credit card has changed from 9% to 39% because you were late three hours on you payment". That's a happened to couple people I know. How pathetic.
The banks need us more than we need them. So next time your account is a little overdrawn, go down to the bank manager and say, "Look ,work with me here, I'm a customer, not a bank robber. Take your late fee and shove it. If you treat me right, I might do more business with you , or deposit more money in your bank. At the very least, I won't send my cousin Frank in here for a loan because he's a flake and won't pay you back". Of. course the bank will say, "No, send him in, because if his credit score stinks we can charge him a higher interest rate, and more fees, and the government will bail us out when he defaults anyway". Go figure.


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