The Traps Of Banks
One thing that has drove me crazy is dealing with banks and the fees they pin for everything you do. I have talked to others about this before and found that I'm not the only one who has had this kind of trouble. It turns out that overdraft protection programs are mostly a way for banks to get money. The American Bankers Association says that courtesy overdrafts started because many customers wanted them. (Courtesy overdraft protection is the one that the bank automatically signs you up for, simply by linking your checking account to your savings or a line of credit.) Kevin St. Pierre, a senior banking analyst, says, "We think that bounced check fees or insufficient fund fees were $11 billion in 2004 out of $35 billion in total service deposit service charges." Now that's a big figure. What the banks are doing here is completely legal and very profitable. They make a killing on fees and the simple mistakes people make. Which is one reason why now I do my banking at a credit union.
Posted by Fred at 4/14/2005 09:44:00 PM