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[Thad]

As you've probably heard by now, BofA is responding to the new caps on debit card transaction fees by charging its customers $5 a month to use them.

I don't expect I'll leave BofA over it, but I have absolutely no problem with cutting up my debit card.  I only use the thing at ATM's and at the start of the month when my credit card bill is due.  I've already got an ATM card for the former, and I'm careful enough to pay the latter immediately if I end up using it around the due date.

Funny thing is, if they'd made it fifty cents a month nobody would have balked and it would have still made them hundreds of millions of dollars.  And yes, I realize 90% of their customers would have to leave for them to make as little money on $5 a month as they would for a tenth of that amount, but not all costs come in direct monetary form.  The big banks already have a not-so-favorable public image, and a fresh thumb-in-the-eye to customers isn't what you would call mitigation.

[A²]

My parents are considering leaving BofA over this. Granted, three cards (A card for them, and my brother's account is on theirs) means $15 a month.

[Brentai]

It's not like debit cards* were ever even the best option to begin with.  This either effectively kills it, or it just gives competitors plenty of ammo to use in advertising.

* Or BofA for that matter.

[Ziiro]

Chase Charges a $10 fee per month if you don't have direct deposit or a certain amount in the account every month.

Food for thought.

[Thad]

BofA charges if you go below your minimum too, though.  I thought everybody did.

[Ziiro]

When I was with Washington Mutual years ago? No. They did not. They were then bought out by Chase and it's now something Chase does. Mind you there is no "minimum balance" if you have a consistent direct deposit.

[Catloaf]

Not really a big-bank thing/might fit better somewhere in 'real life' such as 'shit days' but still.

Recently I found myself in a monetary hole where my credit card bills are higher than my ability to pay them, meaning for the first time ever I might not be able to pay my full statement balance come the 27th.  Seeing as I haven't changed my spending habits all that much, I was looking over my checking account history at my credit union, which used be be great, but then recently got bought out by another credit union and has been getting exponentially worse since, and what do I find?  That a check just about the size of my lack of funds was processed on one side (the money was taken from the outgoing account) but never made it to my account.

This and various minor but numerous frustrations are making me consider looking for a new bank/credit union.  And while I know where to avoid (BoA, Citi, etc.) I don't know of any examples of good banks.

[Brentai]

Wells Fargo is still okay as far as banking goes, just avoid taking out any loans from them.

Dunno if they reach as far as wherever you live though.  If you need coverage, you're kind of tied to Chase/BoA.

[Thad]

BofA's backed down from the debit card fees.  MSNBC warns that this of course just means they'll try to be more subtle the next time they jack up their rates.

[sei]

I don't think Chase has backed down from theirs.

I wonder how local credit unions handle debit cards. Wagering, "not at all."

[Royal☭]

My local credit union (local being a relative term, as the closest branch is 3 hours away) charges me nothing for my debit card. In fact, they give me money for using it.

[Brentai]

I don't think Chase has backed down from theirs.

Chase really doesn't give a shit.  They'd be more than happy to whittle their clientele down to just the people who they deem qualified for a fee waiver.  BofA on the other hand is almost entirely patronized by... everyone else.

My local credit union (local being a relative term, as the closest branch is 3 hours away) charges me nothing for my debit card. In fact, they give me money for using it.

As does Wells Fargo, so debit card Netflixery isn't really a universal big bank thing (although WF probably still qualifies as "small enough to fail").  They do give bigger incentives for credit card usage though, so that's where they keep ahead for now.

[Thad]

Keep in mind "they" don't give you money for using it, the stores you shop at do.  The banks don't give you free money; it comes from somewhere.

Which is not to say that I feel there's anything wrong with taking that 1% cashback or whatever, whether it's from local merchants or big banks.  It's just good to keep in mind where it comes from.

[Ted Belmont]

Also, those merchants usually compensate for that 1% or whatever by raising their prices, so really, the money is coming from the customers.

[Thad]

While I've already mentioned my ambivalence about Cordray's recess appointment, it sounds like he's off to a good start:

One day after President Obama appointed Richard Cordray as director of the Consumer Financial Protection Bureau over the objections of Senate Republicans, the bureau announced the launch of a new “nonbank supervision program.”

What’s a “nonbank”? That’s the CFPB’s term for a lender that doesn’t have a bank, thrift, or credit union charter. Mortgage lenders, payday loan operations, debt collectors, and consumer reporting agencies are all considered “nonbanks.”

[...]

During a speech on Thursday at the Brookings Institution, Cordray focused especially on concerns over nonbank mortgage lenders. “Novel and exotic mortgages battered housing markets and triggered the financial crisis that wrecked the economy and hurt millions,” Cordray said. “Since most of these businesses are not used to any federal oversight, our new supervision program may be a challenge for them. … But we must establish clear standards of conduct so that all financial providers play by the rules.”

[Büge]

http://www.rollingstone.com/politics/blogs/taibblog/another-hidden-bailout-helping-wall-street-collect-your-rent-20120319

[Thad]

So I'm sure we've all, at some point in our lives, gotten a Nigerian scam E-Mail or some other variation on the "Give me a small amount of money upfront and I'll give you a lot of money in return at a later date" con.  And I'm sure we've all wondered, "Who the fuck is stupid enough to fall for that?"

Well, this thread is called "Banks", so you can probably guess that the answer is "banks".

Trying to take advantage of banks’ desperate need for capital, con men are approaching banks using the classic scheme of offering to obtain funds for an upfront fee.  In many cases, the desperate borrower makes the payment and the happy con man heads on out to relax in the Caribbean.

[Cthulhu-chan]

I don't...

 

How is this even possible???

[François]

Copious amounts of desperation, stupidity and greed in various proportions.

Business as usual, in other words.

[Brentai]

Banks that are suspicious of any too good to be true offers of cash for upfront fees are urged to file a Suspicious Activity Report with the FDIC.

A Suspicious Activity Report is a one-page form that fucking bank tellers fill out for every large transaction.  If banks are getting ripped off without submitting one at some point then they're going wildly off-procedure, and if anyone thinks the FDIC is going to ever pay attention to it except after the fact, they are a robot.