Question: Scott Chilcote complains about the ever-expanding fees banks are charging their customers. While it’s true that banks charge for things that used to be free, so what??? Scott, if you don’t like the fees, you don’t have to use the bank’s services. Find another bank. Are all banks charging fees? Perhaps, but in a competitive market, the fees will vary and somewhere will be the “best” deal for you. Shop around. For that matter, you don’t need a bank at all. Millions of Americans cash their welfare checks at the liquor store or check-cashing service, and when needed buy money orders at the local convenience store along with their malt liquor and lottery tickets. Yes there are fees, but they don’t have to deal with the evil banks! Part of the problem is that the average American has so little savings that the banks really don’t make any money taking in deposits like in the old days. (The average American has a very small net worth, about $2000, or even negative, depending on whom you believe). Scott, I do agree with your observations about credit cards and other forms of credit being given to almost anybody with a pulse, and with > 1 million personal bankrupticies in 1996, everyone (including the frugal, careful, savers) get screwed proportionally (higher fees, etc.) to cover the idiots.

Answer: The bankers have also been trying to kill the credit unions by suing AT&T Family FCU (in Greensboro, ironically enough!) and getting some tough restrictions on the select employee groups that can become members. They even got an injunction that prevented credit unions from signing up new members (thankfully, that was reversed in February). Some CUs were turning away 1,200 potential new members a day.

The reason is obvious: a credit union shows the bankers that they can offer financial services with *EXCEPTIONAL CUSTOMER SERVICE* without soaking the members for outrageous fees (such as the surcharges on ATM usage which is pure greed). But the bankers have no desire to reform themselves…why do it when you’re making obscene profits off the people who can’t join credit unions?

There is no way I’m ever going back to a commercial bank ever again. I’m an *OWNER* in a credit union just like everyone else who is a member…and that makes all the difference in the world. I’d rather make the credit union better off rather than some fat cats in Charlotte! The only “utility” that I have found to charge my credit card is MCI. All my other auto-payments (utilities,mortgage,student loan, health club) use direct debit (also known as auto-suck).

The reason is clear, when a merchant/utility/whatever places a charge on your credit card bill they must pay visa/mastercard a small percentage of the charge.

Related posts:

  1. Student Loan Lenders..
  2. Parent Plus vs Student Loans and deferment
  3. Hope scolarship Credit
  4. Lowering medical bills
  5. Parent Plus vs Student Loans and deferment
  6. Student loans the lifetime debt.
  7. difference
  8. AP Doesn’t mean ANYTHING
  9. Real help for Defaulted Student Loan
  10. Can you pay a mortgage with student loan money?
  11. pay off or play the market?
  12. Private Student Loan If You Have Bad Credit?