| Author | Message | ||
     Buellitup |
I'm not a huge fan of those call to action emails that circulate the internet. You know the ones, they're the "don't buy gas today so the oil cartels go under" style of email. No one likes that junk.... ....but I got one the other day that kind of resonated with me, and it actually could make a difference. It said to ditch your big-box bank and move all of your assets to a local credit union. I'm no finance pro, but I don't think more than 15% of people would have to ditch a bank before it went under. It would depend on how leveraged they were, but I really doubt it will take much. I also think this is why the banks are reversing their recent ATM fees; the out flux of people was too great. The big difference with this is that it's a cumulative effect. So, if you decide to do this in 6 months from now, it still impacts the bank. As a double plus, you start supporting your local small business. Disclaimer: I switched to a credit union about 6 months ago. | ||
| Slaughter |
Sorry but in my case, you're about two decades too late. | ||
| Fahren |
The mind reels at all the fees large banks come up with. Yes, the $5 debit card fiasco was a big one - but have you tried looking at what it takes to have a free (no fee) account at a large bank? I went into Chase the other day to cash a Chase check from someone who has an account there. "Sorry, there is a $6 fee to cash a Chase check if you don't have an account here." So I figured I would see about opening a small savings account: $4 per month fee for a savings account, unless you keep a minimum $300 balance!!! For a savings account that does not even earn 1% interest!!! Don't get me started on checking account fees... for the "privilege" of having a checking account there?! And I'm certainly not interested in parking minimum amounts in accounts just to play their game and avoid the fees. Imagine what the banks are making, when you multiply the fees out by millions of accounts... every month, drawing $4 out of your puny savings account, asking you to pay them for loaning them your savings so they can use it to loan out and make more money, leveraging yours. It's an affront, and there are alternatives, so make your money talk and take it elsewhere. Maybe (maybe) they will get the message. Credit unions sound like the way to go. I don't have any that are very local to me, but smaller, non-national banks also generally give much better deals than the big banks. Free market at work - it's just smart shopping. | ||
| Ulyranger |
I was not, nor currently motivated by the "put them out of business" thing, but always look local first when it comes to doing business. At least first crack at my business if available. Been with my credit union for almost twenty years, locally held mortgage by local bank, it's all about choices..... For me it's about keeping my business/money local as much as possible and obtaining better customer service. | ||
| Johnnylunchbox |
Right now the best options for simple savings are either a credit union or a mattress. | ||
| Kyrocket |
"For me it's about keeping my business/money local as much as possible and obtaining better customer service." Ed Zachery! All of our accounts are local. I've had an account at my back since the early 70's. Things are far from what they used to be but I can still go in and get just about anything I want on a signature. Ahhh the benefits of small town, America. My dad told me a story of when he went to the same bank in '76 when he was looking at a house that was auctioning off and the loan officer, John T. "Red" Petro said O.K. let us know if you buy it. Dad said well, don't I need to sign something or qualify first? Red just said to let them know if he bought it, dad was still persistent about pre-qualifying and Red finally said, look, if you buy it you're good to go, if not, then you'll get the next one. Dad ended up buying the house and we lived there for the next 18 years. | ||
| Hootowl |
When the government decided to drastically alter their business model by passing laws that restricted interest rates and late fees, everyone with two brain cell to rub together knew the banks would have to raise that revenue some other way. Now it's happening. No one here should be surprised. I get that congress is surprised. See my note about brain cells above. | ||
| Cityxslicker |
My 'local' credit union is Navy Fed. | ||
| Fahren |
Hootowl, you miss the point entirely. The banks do not "have to raise that revenue some other way." They do not have to raise that revenue. Period. A credit union is a not-for-profit enterprise. Yet they do business - they take in deposits, lend money out at interest, and promote individual and company wealth, often at a local level. They are not in the business of leveraging your money to maximize profits for their own personal and corporate wealth. They are not in the business of charging you a fee for agreeing to lend your money to them so that they can turn around and make as much money as possible, using your money for their benefit. In the biblical world, they seem to have had it right: usury is a sin. Jubilees allow a re-set. Re-sets avoid massive social unrest, upheaval and violence. Governmentally, and as corporations and individuals, debt has allowed us all to live beyond a sustainable level, "beyond our means." Time for a re-think, for a reflection on values? http://www.financialsense.com/node/6783 | ||
| Froggy |
Buellitup, this idea has been floating around on many websites ever since the whole fee fiasco started. The call is to have everyone close their bank accounts on the 5th. I will be opening a credit union account today, it will take me time to transfer all my bills, deposits, and other stuff over so for the foreseeable future I'll have both. Wells Fargo has been good to me over the years, no ridiculous fees yet so I am in no rush to totally cut ties. | ||
| Court |
Interesting. I won't get started ....... Just two comments. 1). I think I know Ky's Dad. 2). For those voicing, and I don't disagree, concern over fees ....... Look at your cellphone bill. Lots of thoughts on this .....but, I'll listen for now. | ||
| Rpm4x4 |
wells fargo (doesnt deserve to be capitalized) and I had a 16 year run that I ended 4 years ago. I started going over some of my paperwork from a very large loan I had and realized that there was a late fee attached every month for 7 years. I found this odd since I always pay my bills early. They claimed that I missed my first payment so I was actually paying my loan 3 weeks late instead of 1 week early. First of all there is no way I missed my first payment. Second, do ya think I could have got a notice at some point?! Third when I got my statements do you think the fees could have been on there? Nowhere were there any signs till I tried to pay it off and the fees were added at the end of the loan. Dont believe me? Ask them how their late fees get added and if you can see it on the statement.BTW, I have a theory as to how I missed the first payment. I bet the teller applyed the payment to the wrong loan (I had two at the time) as I didnt have a payment book yet. I disscussed this all with the branch manager and was told I should have noticed, its my problem, and I need to pay up. Really? As far as Im concerned, they stole thousands of dollars from me and for that they will never see another dollar. This is just one of the problems Ive had with them. Be carefull if you bank with them, they are shady. rant off On a good note, My local credit union has been amazing. I wish I had been there the whole time. | ||
| Court |
I had a similar experience with Ford Credit. I selected the "Auto Pay" function and they didn't take the first payment on the correct date. They reported is and became the sole smudge on my credit report. I raised a stink with them and got nothing but form letters . . . . after buying over 250 Fords the last 25 years. While I like the cars . . . I moved all my accounts to a better place with a 2.2% APR . . . saved a bundle and never have to deal with them again. | ||
| Hootowl |
"Hootowl, you miss the point entirely. The banks do not "have to raise that revenue some other way." Yes they do. They're not credit unions that are not for profit. They are in business to make money. Their shareholders demand returns on their investments. When shareholders abandon unprofitable enterprises, that enterprise begins to fail. That's capitalism. That's healthy. Is a bank failing a good thing? I don't think it is. | ||
| Geforce |
I bank with USAA... their insurance is hit and miss on the homeowners side but I really can't complain about their fees or credit services. When i first joined the Army I got a Wells Fungi (Fargo) military account and within 90 days I had to close it and move to USAA. I just couldn't stand the lack of customer service or the silly rules and fees. Enough was enough. When we get back home to Texas, I'm going to start a large savings account with our local credit union there and keep banking with USAA. If ever I get a bad feeling from either one, I'll have the ability to move funds quickly. Honestly I don't see why people bank with the larger banks anymore. They are just plain awful. | ||
| Preybird1 |
My bank wells fargo just hit me with a service fee of $9.95 a month. It is supposed to be free....I have 4 accounts with them and am going to jump ship tomorrow because they refuse to drop the fee's. And i do meet there criteria for free account status. I don't feel i should have to pay to have access to "my" money. I will just go back to cash like i was doing for the last 12 years. | ||
| Slaughter |
I don't look at my cell bill. Hardly use it and it's pre-paid as is my long distance. | ||
| Fahren |
Hootowl, businesses are (of course) in business to make money. But if they try to make too much money and lose customers through excessive charges and especially if that is accompanied by poor customer service, then that, too, is the free market at work. Then they have the choice to try to get customers back (have you received any of those offers from Chase for $200 if you open an account with them? I have received two so far - first for $100, now for $200.) by rescinding their onerous, one might even say usurous, fees, by offering to do more for less (oh no: austerity for banks!!!! But you can't ask that!!!), or other means. Your choice; then, their choice as to how to respond to customers' decisions to walk away. | ||
| Court |
And yet . . .not a single discussion about the outrageous bonuses paid to the Fannie Mae and Freddie Mac Executives . . . . http://www.politico.com/news/stories/1011/67292.ht ml Interesting video floating about of Senator Harry Reid . . .
Thieves in charge. No one scammed the taxpayer for more in outrageous bonuses, inflated costs and waste than federal employees. | ||
| Boltrider |
I ditched Wells Fargo over 10 years ago and I've been a Schools Credit Union account holder since 2001. I've been immune to all the bank nonsense during that time. | ||
| Boltrider |
Free checking, free savings, and no added swipe fees. | ||
| Hootowl |
Farhen, The specter of card fees was in direct response to legislated losses to their business. What if the government passed a law that said you could only earn $20,000 per year from your current job? What would you do? Seek additional income? That's all the banks are doing. Customers are free to leave, and that is capitalism. But the government is preventing true capitalism from taking place by sticking their thumb on the scale. Business is punished for what congress perceives to be something that favors the consumer, but in reality they're just screwing it up for everyone. | ||
| Fahren |
Hootowl, I won't disagree with you - as long as there are these other options, I would just rather see Americans smarten up and exercise them: let that free market thing work, by showing banks that people will walk away if fees are charged. Thank goodness there are local and credit union options, and I hope that by giving them increased business, the big banks wise up and eat into their massive profits, giving the customer the same service and low/no fee service the locals/CU's offer. Court, the thing I don't get is why, if the TBTF banks and the Federal Gov't are all thievin' scoundrels, as can demonstrably be argued, where is all the animosity between Tea Partiers and OWS folk coming from? Both are branches of the same tree called "We the People." Both are angry about abuses and excesses, corruption, thievery and fraud. Both would argue for more local, small-scale management of affairs. Neither really trusts the folks in Washington. One can point to a bunch of loser, poser hipster types camping in lower Manhattan, just as one can point to wacko conspiracy theorists, birthers, and militia-style "patriots" at tea party rallies. Those examples don't change the fact that many of the actual, desired objectives of both sides are the same; many of the grievances are more similar than different. | ||
| Hootowl |
The fees that were legislatively reduced were transaction fees that businesses paid to the banks. This affects credit unions too. I'm a member of USAA, and the president sent out a memo to shareholders (if you have money with them, you're a shareholder) that these regulations would affect them too. Credit unions can't make more than a certain % profit each year, each according to their charter. Most of them make more money than they are allowed to, and return money each year to their shareholders. I get a credit on my insurance every year for this. Those of you with USAA probably just recently got a letter asking how you want your dividend this year. Commercial banks have shareholders too, and they expect returns. Vote with your wallet, sure, but don't demonize the banks for moving the fee from the business to you, when it was the government that did that. | ||
| Hootowl |
"many of the grievances are more similar than different" That may be true, but the OWS solution is more government, and the TEA party solution is less. In that regard, they are diametrically opposed. | ||
| Fahren |
That may be true, but the OWS solution is more government Who says? That seems less than obvious and "given" to me, from what I see. And even if it were true, I would rather see a dialogue/debate between OWS and Tea Party types than the present circus act we call "Congress," any day. OWS and real (not "astroturf") tea partiers are concerned citizens, and should be seeking ways to work together, not bickering back and forth. There is too much that needs fixing, by people who care enough to take action. | ||
| Hootowl |
Who says? They do. http://occupywallst.org/forum/proposed-list-of-ows -demands/ Along with a bunch of other crazy stuff. These people need to go find a nice socialist country to live in, and leave the rest of us alone with our constitutionally limited government. | ||
| Crackhead |
Please don't lump Fannie Mae and Freddie Mac in with Federal Employees. The Fannie Mae and Freddie Mac employees are not bound by the same rules a government employees or the federal employee pay scale. While Fannie Mae and Freddie Mac can lobby now (since FHFA assumed conservatorship), they where able to lobby for who is in charge of them and what the rules are up until the the last minute. Kind of like, knowing your going to die, but you get to pick how the plug is getting pulled. Dig deeper down the rabbit hole and discover who wrote HERA. | ||
| Court |
>>>The Fannie Mae and Freddie Mac employees are not bound by the same rules a government employees or the federal employee pay scale. Probably a good deal for them or maybe not since no wages in history have risen faster than federal employees in the last 24 months. I'd have to dig and find it but one agency had something like a couple folks over $165,000 per year and a year later had added about 1,800 in that range. I think they are now running about 30% above private employers. Nothing but what I hear . . . could be wrong . . if it is, someone be sure to mention what's right. | ||
| Court |
By the way . . . .if you REALLY want to teach your bank a lesson . . . . 1) work your ass off 2) do what ever it takes to advance your education or work skills 3) work your ass off 4) work your ass off 5) refuse when folks offer you an "easier" way 6) work your ass off 7) succeed 8) qualify as an "ultra high net worth" client 9) Let your bank (they'll do all the work for you) get all your stuff set up and put a real person in charge. 10) never pay a fee or "rack rate" for a loan again. That'll put the bastards in their place. |
