Four years back, the government used citizen's tax money to pay $45 million to rescue the second largest bank in the country from going out of business. Since that time, the financial institution has actually been embroiled in various investigations for illegal financial practices ranging from foreign-exchange to home mortgages, and as a result of these shenanigans has paid millions in lawsuits. Now, Bank of America, a company that earns billions, is strong-arming $4.95 from folks who are scarcely making it in this economic climate and desperate to obtain a bank account. Is this a mere indication of frugal banking methods or a symptom of something larger going on--like a small pimple that becomes cancerous. There is something remarkably odd right here.
The bank has introduced a checkless checking account for a cost of $4.95, and this no-frills account will not permit overdrafts. It's a small fee targeted towards low-income consumers who simply require a fundamental bank account. By itself, this appears inadequate grounds to alert anybody, specifically clients or lawmakers. Yet, this chump change in their banking plan can conceal a scary tale about the financial industry and the economic situation itself.
First, of all, here is why it's definitely very strange:
* In today's world of banking, no frill accounts are usually free. In fact, free checking is now the new normal.
* Since 2011, Bank of America has been trying to reintroduce the idea of a basic banking fee. The experiment began by charging bank customers in three states-Arizona, Georgia, and Massachusetts-a flat fee ranging between $6 to $9 for a simple checking account. The idea did not work very well and the pilot program was scratched. In 2012, they tried it again. This time 10 million customers complained vociferously about it.
* There are no waivers. While mega banks do have paid checking accounts, they also have certain conditions to waive the fee--like direct deposits, keeping a reasonable balance, etc.
So why is a multi-billion bank asking low-end customers for petty cash? Why is it seeking a flimsy plan that that most financial institutions think too silly to take into consideration? Is it out of petty reasoning, straight-out greed or hopeless need? Frankly, our only hope as Americans is to move our loyalty from fickle banks that grow fat on fiat money and go back to the only true money, which is God's Money-- Gold and Silver.
The bank has introduced a checkless checking account for a cost of $4.95, and this no-frills account will not permit overdrafts. It's a small fee targeted towards low-income consumers who simply require a fundamental bank account. By itself, this appears inadequate grounds to alert anybody, specifically clients or lawmakers. Yet, this chump change in their banking plan can conceal a scary tale about the financial industry and the economic situation itself.
First, of all, here is why it's definitely very strange:
* In today's world of banking, no frill accounts are usually free. In fact, free checking is now the new normal.
* Since 2011, Bank of America has been trying to reintroduce the idea of a basic banking fee. The experiment began by charging bank customers in three states-Arizona, Georgia, and Massachusetts-a flat fee ranging between $6 to $9 for a simple checking account. The idea did not work very well and the pilot program was scratched. In 2012, they tried it again. This time 10 million customers complained vociferously about it.
* There are no waivers. While mega banks do have paid checking accounts, they also have certain conditions to waive the fee--like direct deposits, keeping a reasonable balance, etc.
So why is a multi-billion bank asking low-end customers for petty cash? Why is it seeking a flimsy plan that that most financial institutions think too silly to take into consideration? Is it out of petty reasoning, straight-out greed or hopeless need? Frankly, our only hope as Americans is to move our loyalty from fickle banks that grow fat on fiat money and go back to the only true money, which is God's Money-- Gold and Silver.
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