The purpose of this website is to address the issue of unethically imposed bank fees. A problem that has millions of people searching for banking alternatives.

• MY STORY

• THE PROBLEM

• A FEW FACTS

• THE SOLUTION

• WHAT ARE MY BANKING AND FINANCIAL ALTERNATIVES? – YOU ASK

• OUR RESPONSIBILITIES AS CONSUMERS

• WHAT BANKS CAN DO

MY STORY

It was the end of the week – finally Friday!!  Had worked my butt off all week – but it felt good – I had made my deposit (and by the bank’s cut-off time too!)  Thought I’d swing by the grocery store and pick up a few things.  Everything is still good!  Went home, checked my bank account (from which I had just withdrawn, via debit card) and realized Uh Oh!!  I’d better transfer some money from another account to be sure I’m covered (got that done before the bank’s cut-off time for transfers too!)  Yippee!  Everything is still good!  I had done this same thing a couple of times before - went to the store (same store), swiped the card, walked out, called the bank (at night), made a transfer over the phone and everything was great!  (Although since then I’ve been told that there is a fee for telephone transfers but that online transfers are “free” – I wonder why??  Hmmmmm!!)

And then…….

I awoke to a beautiful Saturday, fixed my coffee, and proceeded to get online and check my accounts - as I do on a daily basis.  And I’ll bet you all can guess what I am about to tell you. – Yep!  They had done it to me again!!  I had been hit with 3 NSF fees totaling $105!!  (and 2 of those were for one purchase that had been conveniently divided into 2 transactions – no I’m not kidding!)  So – I first did the math to be sure I was not in error, then when I found that I was in fact correct, I printed the relevant transactions and marched myself directly to the bank.  Conveniently (or at least I thought so anyway) there wasn’t a manager there that day – WHAT!!  So I was directed to someone who “was not a manager but played one on the weekends!”  I sat down and proceeded to begin to go over the “math” with her.  Only to be repeatedly stopped with her reasons as to why all this had happened – each one I nipped in the bud, requiring her to dig deeper into the excuse vault for another straw.  Her final explanation was that I had made a debit purchase from a business who utilizes what is called “on demand debit” meaning as soon as I swiped my card, they (the bank) were holding out the money for the transaction – fair enough to me.  If you remember, I said I went home and checked my account and made a transfer to be certain I was going to be covered.  In this bank woman’s explanation, she went on to say that the pending “on demand debit” was considered by the computer (that-a-way to pass the buck – no pun intended!) when figuring my ending daily balance but that my pending transfer credit was NOT considered – HUH!!  This has to top the list for lousy, ridiculous, unethical and sneaky ways to make a buck!  Who thought up this??  Maybe someone from the Woodstock era who’s brain is still pickled and who is hallucinating!! OK – I won’t go there!

OK – enough of all that.  There is a problem here – a huge problem, but there is also a solution.

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THE PROBLEM 

Large banks are not really interested in us as individuals.  The majority of people are not typically making large deposits or borrowing enormous sums of money creating interest revenue.  In utilizing every source of revenue available to them, banks are aware that since they are not likely to make much money via interest from us, the next best way to profit from smaller depositors is to impose fees of which they know we are likely to fall prey.  The unethical point to all this is, just like higher income people are in a higher tax bracket (and pay more taxes) than lower income people, it should also stand to reason that higher income people would be the primary revenue source for banks.

They (the banks and the industry) are bigger and more powerful than we are as individuals.  But there is strength in numbers.  If we want to put a stop to these unethical and unfair practices and policies, we have to ban together.  Lots of “little” depositors equal one (or more) “big” depositor(s). 

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A FEW FACTS

• “Fees” make up about one third of bank revenue.

• In 2005, it was estimated that banks collected $10 billion (that billion not million) in fees.

• The banking industry is tied to and tightly woven with the government much like the oil industry.  One is not apt to turn their back on the other so asking congress to help with this problem would be about as useful as a tit on a boy dog.

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THE SOLUTION

We all withdraw our money from the banks and close our accounts at virtually the same time.  What a wallop to the conglomerates!!  In a matter of days, they could stand to lose potential revenue in the BILLIONS!!  Somehow I think that would get their attention!

I have formed a petition to support the fight against these outrageous, unfair and unethical bank fees.  By signing the petition, you are helping to create a “big” depositor that will certainly get the attention of the banking industry. 

Maybe we’ll give our “big” depositor a virtual persona – we can call him Mr. Woodstock!  Don’t worry, he’ll never know the difference – his brain is pickled, remember!

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WHAT ARE MY BANKING AND FINANCIAL ALTERNATIVES? – YOU ASK

• Independent Local Banks – The backbone of local community and economic support.  The only halfway negative thing here is that these banks are not usually widespread.  But most all of them today offer online banking.  So unless you have a need to physically visit your bank on a very regular basis, physical location shouldn’t be a deterrent.  

• Credit Unions – These are owned by their members and you must join them.  There are usually some criteria you must meet in order to be eligible to join, but many credit unions’ criteria are broad enough that most anyone can join.  I actually found one whose $5 membership fee went to the Autism Society in my city, which was appealing to me since I have an autistic son.  It is also nice to know that even if it’s in a small way, I have contributed to something meaningful.     

• Online Banking – There are a number of online banks that do not have physical addresses and can be accessed from anywhere via the internet.

 
You could choose one of these options or a combination of them to suit whatever banking needs you may have.  And while it’s true that many of these institutions are physically few and far between, with today’s electronic banking options there are few reasons one would need to physically visit their financial institution.  The only one I can think of right off hand would be to visit a safe deposit box.  And unless you need to visit your safe deposit box on a very regular basis, it would be a small price to pay to drive a little out of the way versus the price you pay in “fees” that are charged by larger banks with more locations.

 
Regarding ATM convenience – Smaller financial institutions are recognizing the needs of their customers for convenient ATM access and more and more of them are joining ATM networks and offering no fee access for their account holders.  Additionally, many retailers, i.e. Walmart, offer cash back during the checkout process, which is a very convenient place to get cash when you need it. 

OH! – I almost forgot - there’s always the shoebox and safe method of banking!

~ Local independent community banks and credit unions support local economics and value their customers on a more personal level. ~

Search our Directory for a Personal Banker in your area. 

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OUR RESPONSIBILITIES AS CONSUMERS

We should all be financially responsible.  You should never try to spend money that you simply don’t have.  You should be able to check at anytime your accounts via the internet through online banking or by telephone.  If your bank does not provide these kinds of accesses, you should probably change banks anyway.

This in no way implies that if you have been the victim of identity theft you are or have been irresponsible.  Unless of course you have given your information to the thief – you get the point.

It is also not an implication that you have been irresponsible if you have been manipulated by the banks’ computer software and therefore unethically charged fees of any kind.

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WHAT BANKS CAN DO

• Provide warnings of potential overdraft – Just like an ATM warns you that there may be a fee imposed and asks if you want to continue the transaction, the same could be true at any electronic point of sale.  Something like, “an overdraft fee may be imposed on this transaction – do you want to continue”?  You would have the option to take the risk or not.

• Give account holders choices – For example, set the account to automatically decline any electronic transaction when the banks system shows that there are not enough funds available to cover the transaction.  Or, set the account to provide the warning that there will be a risk of overdraft fees if the transaction is continued.

• Change the fee structure – This would eliminate the $38 hamburger and in my case the $136 tank of gas.  Banks could charge a percentage of the transaction that is presented against insufficient funds.  Let the “punishment fit the crime” so to speak. 

• Change software “language” – If computers can be programmed to do the unethical things that banks are intending them to do, then they can also be programmed to understand things like cash is cash, which is different than a check or transfer.  A computer can be programmed to allow a cash deposit to be posted and available immediately.  Also, considering either pending debits AND credits or neither (but not either or) can be programmed.  And similarly, processing credits first then debits in order of amount, lowest to highest, can be understood by a computer.

 
Sure, this means the banks would not gain as much revenue as they currently are by imposing unethical fees, but what is worse?  We close our accounts and banks completely losing what little interest all of our deposits combined create and the majority of the revenue source that “fees” provide or making the interest our “little” deposits provide and only penalizing the irresponsible and the guilty?

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Please click here to sign the petition to Fight Unethical Bank Fees.

You may post your comments by clicking here.

Feel free to contact me.